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 t

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