Problem related to IDT..
Urmila Mahalwal (CA ) (120 Points)
30 January 2010
What is the difference between TRANSACTION VALUE and ASSESSABLE VALUE?
Urmila Mahalwal (CA ) (120 Points)
30 January 2010
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 30 January 2010
Simply speaking transaction value is a value at which sale is made whereas assessable value is the value relevant for calculating excise.
Transaction value will be the assessable value if following conditions are fulfilled -
- The goods are sold.
- The goods are sold for delivery at the time and place of removal.
- The assessee and buyer are not related persons
- The price is the sole consideration.
If any of the above condition is not fulfilled then transaction value shall not be assessable value. Rather Excise Valuation rules shall be applicable. For detailed study you can refer Sec. 4, 4(1)(a), 4(1)(b) & 4(3)(d) of excise act.
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