Determination of turnover of purchase.

The tax, payable in respect of turnover of purchase under the Ordinance, shall be computed on the taxable turnover of purchase of taxable goods and for the purpose of determination of such turnover, amounts specified below shall be deducted from the gross turnover of purchase if they are included in such gross turnover:

(a) all amounts allowed to the dealer as discount, provided that such discount is allowed in accordance with the normal trade practice or is in accordance with the terms of the contract or agreement entered into a particular case : provided further that the accounts show that the dealer has paid only the sum-originally charged by the person selling goods less the discount.

(b) Subject to the provisions of the Ordinance, all amounts allowed to the dealer in respect of any goods returned by him to the person selling such goods within six months of their receipt: Provided that -

(i) the purchasing dealer issues a debit note to the person selling the goods and receives a credit note, from such person, of the amount representing the purchase value of the goods so returned; and

(ii) the accounts show the dates on which the goods were purchased, received and returned and also the dates on which the amount for which refund was received or credit was allowed by the selling person.

(c) all amounts for which any non-vat goods are purchased from a registered dealer and purchasing dealer possesses sale invoice issued by the selling dealer;

(d) all amounts representing turnover of purchase of taxable goods except non-vat goods where such taxable goods are purchased from registered dealers and purchasing dealer possesses tax invoice issued by the selling dealer;

(e) all amounts representing turnover of purchase of exempt goods;

(f) all amounts paid by a dealer for the purchase of a business as whole;

(g) all amounts representing turnover of purchase of goods where such purchase is exempt from levy of tax in view of provisions of clause (c) of section 7 ;

(h) all amounts representing turnover of purchase of goods where such purchase is covered under any of the subclauses (i), (ii) or (iii) of clause (a) of section-7.