Items included or excluded in Transaction value

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Neeraj Pangotra (Querist)

25 June 2011 Dear all,
i have a query. one of my client is giving discount to his customers @ 50%.bt as per excise he can only give 30%. so what he can do make good of 20 %. here is the example:

Rate per piece is = 100
Trade Discount @ 50 % = 50
Basic value = 50
Excise duty @ 10.3% = 5.15
Total Value = 55.15
CST @ 2% = 1.10
Total Sale = 56.25

as per excise act he can give discount @ 30% so the calculations will be as follow:

Rate per piece is = 100
Trade Discount @ 30 % = 30
Basic value = 70
Excise duty @ 10.3% = 7.21
Total Value = 77.21
CST @ 2% = 1.54
Total Sale = 78.75

my question is how can i adjust the difference of 22.50 (i.e 78.75-Rs. 56.25). I dont want to change the rate per piece. what can i do in it. where i can adjust the difference of 20 % (i.e. 50% - 30%)of discount.
Also tell me that can i adjust 20 % discount as year end discount? for example:

Rate per piece is = 100
Trade Discount @ 30 % = 30
Year End Discount @ 20 % = 20
Basic value = 50
Excise duty @ 10.3% = 5.15
Total Value = 55.15
CST @ 2% = 1.10
Total Sale = 56.25

Please help me out as soon as possible.

U S Sharma

U S Sharma (Expert)

25 June 2011 please share the commodity you are clearing , is it under MRP based pricing or based on SRP, in SRP there is no binding to declare the assessable value without showing discounts on invoice.

Neeraj Pangotra

Neeraj Pangotra (Querist)

27 June 2011 Thank you sir for replying. bt i jst want to know that hw can i pass the difference of Rs.22.50 to customer. please tell me from both point of view (MRP & SRP)

U S Sharma

U S Sharma (Expert)

17 July 2011 clear the goods to assesee under SRP

make all discounts and then come to assessable value after all discounts, pay duty on this amount only and clear the goods.

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