Cash Discount

Cash discount, cash discount cannot be confused with trade discount. The two concepts are wholly distinct and separate. Cash discount is allowed when the purchaser makes payment promptly or within the period of credit allowed. It is a discount granted in consideration of expeditious payment, Dy. C.S.T. (Law) Board of Revenue v. Advani Coorlikon (P.) Ltd., (1980) 1 SCC 360: AIR 1980 SC 609 (610): (1980) 1 SCR 931. [Central Sales Tax Act (74 of 1956), s. 2h