Discount on supply directly linked to subsidy forms part of transaction value: Madras HC

Supreme Paradise Vs Assistant Commissioner (ST) (Madras High Court) Madras High Court held that if a discount offered on a supply is also directly linked to subsidy by a 3rd party, the value of such subsidy will be includible in the “transaction value” of the supply. In other words, a discount linked to the subsidy alone can form part of the “transaction value”. Facts- The petitioner is engaged in retail sale of mobile phones. The department had issued notices to the petitioner in DRC-01. Notably, in the impugned orders, it has been concluded that discount on the value of supply can be...