Valuation

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Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2012 respected sir/maam;
In case where we have to calculate assessable value for levy of excise duty from following information:-
1.cum duty selling price inclusive of sales tax@4% is Rs.60320
2.rate of excise duty applicable to the product is 14%.
3.freight(to be charged extra from cum duty selling price) is Rs. 2000.
4.discount allowed is Rs.2400.
whether we shall start first by deducting sales tax portion from Rs.60320 amount n then excise duty portion Or we shall first deduct freight and discount from Rs.60320 n then sales tax portion n then excise duty portion, to find out assessable value.

U S Sharma

U S Sharma (Expert)

19 August 2012 basic price = 57104.10
ED 14% = 7160.59
----------------------
cum duty price = 58307.69
freight = 2000
=========================
60307.69
Vat 4% =2412.31
========================
total 62720
less discount 2400
========================
Total = 60320

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2012 hi sir :
i am unable to understand ur solution kindly elaborate it.
the answer to the given Q is Rs.48673.31 according to the solution which i have in my book.

U S Sharma

U S Sharma (Expert)

15 September 2012 the sum is solved as per the query :) if the book is misprinted, what one can do :)

ask your seniors / mentors / teacher, to resolve in another way so that you would reach the answer as per book if possible

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