Trade Allowance - Definition - Law Dictionary Home Dictionary Definition trade-allowance

Definition :

Trade allowance, the question whether a particular payment is a trade allowance or not, depends upon the facts of each case. Firstly, it must be a deduction in any transaction in respect of commercial crops. If it is a deduction out of the price or commodity agreed to be paid or transferred, it would be a trade allowance. On the other hand, if the payment is 'de hors' the terms of the transaction but made towards consideration for the use of the premises or services rendered, it would not be a deduction from the price or in any transaction, M.C.V. S. Arunachala Nadar v. State of Madras, AIR 1959 SC 300 (308). (Madras Commercial Crops Markets Act, 1933, s. 14)