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57. Reduction of sale price for levy of tax.

(1) A registered dealer may, in respect of any sale effected by him on or after the appointed day on which sales tax is payable by him and where he has not separately collected any amount by way of sales tax, deduct from the sale price of the goods a sum calculated in accordance with the formula as follows:

Amount of deduction = SP x [R/100+R]

Where R = the rate of tax applicable to the sale of goods and

SP = the sale price of the goods;

(2) A registered dealer may, in respect of any resale of goods made on or after the appointed day of goods originally manufactured whether before or after the appointed day by an unit under the exemption mode of any Package Scheme of Incentives, for the purpose of levy of tax deduct from the sale price of the resale of such goods an amount calculated in accordance with the following formula:

(a) Where the goods are purchased by the claimant dealer whether before or after the appointed day and tax is not recovered separately from the claimant dealer in his purchase invoice;

Amount of deduction = Amount of purchase price including the price of goods used in packing if the packing is charged separately.

(b) Where the goods are purchased by the claimant dealer

on or after the appointed day from a registered dealer who has separately recovered tax from the claimant dealer

Amount of deduction = P - (T ? 100/R )

where P is the aggregate of the purchase price of the goods, and of the goods used for packing of the said goods if the packing is charged separately. T is the amount of tax recovered separately from the claimant dealer in respect of the purchase of the goods and R is the rate of tax generally applicable to the sale of such goods:

Provided that no deduction as aforesaid shall be granted, if the purchases are not supported by a tax invoice or bill as provided in sub-rule (2A) of rule 77

(c) A registered dealer in respect of the resale effected by him on or after the appointed day of goods originally manufactured by an exemption unit and which are held by him in opening stock on the appointed day may reduce from the sale price his purchase price if the said goods are supported by a bill or cash memorandum as provided in clause (aa) of rule 53 of the Bombay Sales Tax Rules, 1959, as the rule stood immediately before the appointed day.

(3) Where the sale price is to be reduced in accordance with sub-rule (1) and also sub-rule (2), then the sale price shall first be reduced in accordance with sub-rule (2) and the reduced sale price shall be further reduced in accordance with sub-rule (1).

(4) Where a registered dealer has sold any goods after the appointed day by way of delivery of goods on hire-purchase or any system of payment by instalments, then he may deduct from the sale price, the component of interest, contained in the sale price, if the agreement for sale is reduced to writing and the component of interest is specified therein.