Duty calculation
This query is : Resolved
30 December 2015
ED is calculated on basic even if discount is mentioned on invoice ?
I have observed Gov companies calculate ED on basic even if discount is mention on invoice
in private companies ED is calculated on net of discount
which is correct ?
30 December 2015
The Central Department has confirmed that cash discount is allowable as deduction, if actually passed on to buyer, if transaction is on principal to principal basis. CBE&C Circular No. 643/34/2002-CX dated 01-07-2002.
Discount on quantity, cash and turnover is deductible from assessable value if given under terms of sale or trade practice, known before removal of goods and actually passed on to buyers- Wearwell Tyres v CCE 2009 (12) TMI 416 - CESTAT, NEW DELHI = (2010) 257 ELT 126 (CESTAT).
Cash discount is cost of Finance – In CCE v Pace Marketing Specialities 2004 (167) ELT 401 (CESTAT) also, it was held that cash discount is cost of finance. It cannot form part of assessable value – same view in Malwa Cotton Spinning Mills v CCE 2007 (10) TMI 209 - CESTAT, NEW DELHI= (2008) 224 ELT 425 (CESTAT
Discount on quantity, cash and turnover is deductible from assessable value if given under terms of sale or trade practice, known before removal of goods and actually passed on to buyers- Wearwell Tyres v CCE 2009 (12) TMI 416 - CESTAT, NEW DELHI = (2010) 257 ELT 126 (CESTAT).
Cash discount is cost of Finance – In CCE v Pace Marketing Specialities 2004 (167) ELT 401 (CESTAT) also, it was held that cash discount is cost of finance. It cannot form part of assessable value – same view in Malwa Cotton Spinning Mills v CCE 2007 (10) TMI 209 - CESTAT, NEW DELHI= (2008) 224 ELT 425 (CESTAT
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
