Trade Discount eligible for exports, FEMA

[PANKAJ BAVISI]

What is max Trade Discount eligible for exports.

Posts / Replies

[Rama Krishana]

There is a difference between discount and commission. I think, there is no restriction on trade discount since it is between the supplier and buyer of goods. But, trade discount must be declared at the time of export. If you fail to declare trade discount at the time of export, you may face difficulty when an issue arises at time of receipt of foreign exchange against export. A problem may also arises when u get export incentives on value without trade discount and later u receive the amount after trade discount. Therefore, it is always better to declare trade discount at the time of export. Read the master circular: http://www.taxmanagementindia.com/Site-Map/FEMA/detail_circular.asp?ID=6379