12.5% Excise to be levied on base price or discounted price

[Asked by Guest]

Dear Sirs,

I am a distributor for a multinational company Construction chemicals, They have various manufacturing locations in India

In their invoice for example the basic value of a material is 2000 rupees and they are giving a discount of 50%

how much excise they should charge

12.5% on 2000 (Basic price)

or 12.5% on 1000 (Discounted Price)

please share your feedback and any supported links or documents

Thanking you

[email protected]

AI Summary

Transaction value: excise duty payable on net price after genuine discounts, subject to documentation and eligibility.
Excise duty is assessable on the transaction value-the net price after legitimate discounts-if discounts are genuine, documented, passed to independent buyers, not to related parties, and where the discount policy and basis are known prior to removal; duty paid on a higher price may be refunded when discount entitlement later crystallises, consistent with Board guidance and judicial precedents.