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Ad valorem

675 views 2 replies

Jishnu

CA CWA Final (Manager Audits)

56 Points Joined September 2010

Hello

According to CBEC 1/2011 notification the excise duty is calculated at the rate of 1% ad valorem(presently it is 2%). The notification contains goods specied according to sec 4A of Central Excise Act, ie., MRP basis of valuation. Here my doubt is whether MRP Based value can be treated as Ad valorem value in this case

Jishnu

Replies (2)

CS,CA F,Numrologi TusharSampat

CS CA F Numerologist Astrologer Graph

85935 Points Joined May 2010

No ,

as both are different aspects and section 4A is very special basis of valuation on MRP.

dharmendra singh

asst manager finance

53 Points Joined December 2012

AD valorem means according to value. Sec 4 &4A prescribes method of valuation based on transaction value and mrp less abatment. So, both gives a value on which duty is payable. Said notification is for lower rate and applicable for all the goods specified therein whether it is taxable at a value under Sec 4 or 4A.