Revenue Authorities say “Discounts are towards promoting goods”

Imagine a logic defying perspective, where a position is taken on the matter of discounts offered saying that the discounts are nothing but a consideration for the marketing and business promotion activities being undertaken by the dealer for the manufacturers. In a curious case, that’s exactly the position taken by the Revenue against Vardhaman Electronics. The retailer who sells white appliances received discounts which the revenue viewed as payment for a services to promote the manufacturers’ goods.