Cash discount /Trade Discount

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..... Dear Sir, My client has calculated Assessable after deducting cash discount of 3% whether it is allowable under the the valuation rule 4 of the act or after arriving duty amount we will give discount or before duty we have to calculate which is correct? - Reply By Pradeep Khatri - The Reply = Cash discount permissible The Central Department has confirmed that cash discount is allowable .....

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..... 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, .....

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..... 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 = (200 8) 224 ELT 425 (CESTAT). - Cash discount /Trad .....

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..... e Discount - Query Started By: - MUNIRAJ SRINIVASAN Dated:- 3-2-2013 Central Excise - Got 1 Reply - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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