As per Ind AS 115, Revenue from Contracts with Customers, volume-based discounts should be accounted for as variable consideration, which means that the discount should be estimated at the time of sale based on the expected volume of goods or services to be purchased by the customer.
The expected discount amount should then be subtracted from the total revenue recognized for the sale. If the actual volume of goods or services purchased differs from the original estimate, the discount should be adjusted accordingly and recognized in the period in which the estimate changes.
