Valuation in Central Excise, Central Excise

[POLYPLEX CORPORATION LTD.]

Dear Expert

Can you please tell the Difference between Assessable Value , Transaction Value & Invoice Value in Central Excise with example 

Posts / Replies

[Pradeep Khatri]

Assessable value is the value on which Central Excise Duty is paid.  It includes the cost of production + overhead exps and profit margin.  Now, there is no relevance of assessable value in the Central Excise Laws to calculate the Central Excise Duty.

Transaction Value is the value on which a particular transaction of sale/purchase takes place between the two parties. Central Excise Duties are now calculated on the transaction value as per the new valuation rules.

Invoice Value is the value which includes taxable amount plus all leviable taxes.  Invoice value cannot go beyond the Purchase Order amount.