we are manufacturing auto parts and before charging excise duty we are giving 10 % discount , is it right thing or not?
4 Replies
CA Ankit Pratap Singh
(Chartered Accountant)
(93 Points)
Replied 12 August 2008
no we cant allow that
Sanjay Dwivedi
(Advocate & Consultant)
(143 Points)
Replied 12 August 2008
Duty is payable on 'transaction value', which has been defined as the price actually paid or payable. Obviously, discount is not part of the amout 'payable' by the customer. The price actually payable will not include the discount.
Therefore, if you are allowing 10% discount, you will have to pay duty only on the remaining 90%. This has been clarified by the TRU letter dated 30.06.2000.
Prabhash Chandra Jha
(TAX CONSULTANT)
(48 Points)
Replied 12 August 2008
<
Prabhash Chandra Jha
(TAX CONSULTANT)
(48 Points)
Replied 12 August 2008
| Originally posted by :bimal | ||
| " | we are manufacturing auto parts and before charging excise duty we are giving 10 % discount , is it right thing or not? | " |
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