Invoices claim through lc

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Vishnu (Querist)
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16 March 2012
Can there be a difference in value between commercial invoice and excise invoice when the payment is claimed by means of LC?

The commercial invoice will be claimed with a discount component in the basic prices while excise invoice will not show any such discount.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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16 March 2012 NO.......NO.
DIFFERENCE CAN BE REMOVED IF YOU HAVE WRONGLY MENTIONED.
REGARDS,

Vishnu

Vishnu (Querist)
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16 March 2012 Pardon me but I think I have not been able to put it clearly
We had negotiated a PO with basic prices and taxes and at the end of it was a discount which was agreed on basic prices.
The PO mentions (basic prices+ taxes n duties – discount on basic price). The material was to be delivered in 2 lots. Payment term is through LC which is opened for an final amount including discount.
We had communicated to buyer that we would issue credit notes for 1st and 2nd lot for discount amount and then claim the same in claim for our payment in 2nd lot. This was because we did not want to highlight the discount in Excise invoice which exchanges many hands at site.
1st lot will be claimed through LC without any discount in original amounts.
However the discount for 1st and 2nd lot will be claimed though commercial invoice which will have the discount and then presented to a bank.
My question is now
A) Can commercial invoice be submitted showing all the basic amount and taxes and duties but deducting the discount which we have to claim? I understand that the claim amount can in no case be more than the amount in LC.
B) If the above can be done, would the bank treat our claim for amount under the LC as discrepant since amount in commercial invoice (which is our claim for payment) and amount in excise invoice will be different?

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