Assessable value

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Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 what will be assessable value of bidis manufactures ?
if his sale is rs. 105315.(with vat of rs. 5035)
is assessable value is same as sales or it is different?

plz reply it is urgentto file a return form er-1.

thanks.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 December 2011 Generally, the Central excise duty in respect of different goods is on ad-valorem basis (i.e. the duty is fixed as a percentage of assessable value of a good). It thus becomes important to find out as to how the value of a good is to be assessed. The valuation of the goods as per Central Excise Act 1944, can be determined on the following three basis:-

* Tariff Value:- the Central Government may fix tariff values of any article by way of notification. The duty is payable on the tariff value so fixed.

* Transaction Value: This is the most common way to determination of assessable value. In most of the products, the value for the purpose of charging duty, shall be taken as the price actually paid or payable for the goods, when sold to buyer. This means the amount, which has been transacted between the seller and the buyer in normal course of business is the assessable value.

For applicability of transaction value in a given case, for assessment purposes, certain essential requirements should be satisfied. If any one of the said requirement is not satisfied, then the transaction value shall not be the assessable value and value in such case has to be arrived at under the valuation rules notified for the purpose. The essential ingredients of a Transaction value are:-
o The goods are sold by an assessee for delivery at the time of place of removal. The term "place of removal" has been defined basically to mean a factory or a warehouse

o The assessee and the buyer of the goods are not related and

o The price is the sole consideration for the sale.

* Maximum Retail Sale Price:- The value is based on maximum retail sale price in terms of the Central Excise Act, 1944. This is applicable to notified commodities. The notification issued in this regard indicates the extent of abatement to be allowed for arriving at the assessable value for determination of amount of duty. Central Government can specify goods in respect of which, the value shall be deemed to be the retail sale price declared on the goods less the abatement. This provisions is applicable to those goods in relation to which, the requirement of declaration of retail sale price on the package is there under the provisions of Standards of Weights and Measures Act, 1976 or rules made there under.

for more info:

https://www.cybex.in/indian-custom-duty/Paper-Rolled-Biris-Manufac-Tured-Duty-Calculator-24031031.aspx

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 December 2011 if you have any query ask, remain, we assist you.....

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 December 2011 thankyou for twice thank me.

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