Treatment of discounts in excise duty calculation

This query is : Resolved

favas av (Querist)
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17 February 2013 Urgent....

Kindly clarify regarding the treatment of discount(Trade, cash and qty discounts) in excise calculation.

I have seen a company invoice which calculating excise duty without deducting discount and the same is being deducted for CST calculation.

Please reply asap...

Arun Kumar Singh

Arun Kumar Singh (Expert)
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17 February 2013 Trade discounts are allowable as deduction for valuation purposes. Trade discount means discount usually expressed as a percentage deduction given to wholesale buyers. Since quantum of trade discount is not payable by buyer to seller, it will not form part of transaction value.