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I AM FACING PROMBLEM IN FOLLOWING QUESTION PLZ TRY ,

DETERMINE THE ASSESSABLE VALUE FOR THE PURPOSE OF LEVY OF EXCISE DUTY FROM THE FOLLOWING PARTICULAR

(I) CUM.DUTY SELLING PRICE EXCLUSIVE OF SALES TAX.....................rS10,000

(II)RATE OF EXCISE DUTY PAYABLE ...............................................................16%

(III)TRADE DISCOUNT ALLOWED (NOT DEDUCTATABLE FROM SALES PRICE)........RS1200

(IV)FREIGHT (INCLUDED IN SALES PRICE)..................................................RS680

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DDDDDD

120 Points Posted on 11 November 2012

Determination of Assessable value:

PARTICULARS	AMOUNT IN RS.
CUM.DUTY SELLING PRICE EXCLUSIVE OF SALES TAX	10000
LESS: FREIGHT (INCLUDED IN SALES PRICE)	680
CUM DUTY SELLING PRICE	9320
ASSESABLE VALUE (SP/116%)	8034.48
EXCISE DUTY	1285.51

Since it is specifically given that trade discount is not deductible from selling price it is assumed that trade discount is given over and above the sales vale.