Under sale of goods by distributor - cautions needed

venkat b. (Querist) 16 February 2017 This query is : Open
Sir,
My friend is a distributor for a MNC Company products, wherein certain discount to the tune of 40 % needed to be given to some customers regularly thereby creating an Under sale situation.

And the company would provide additional stocks to the tune of discounted amount at zero value. This is creating a VAT calculation problems.

Kindly advise what precautions needs to be taken to continue to be in this business.
regards.

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