Valuation in Central Excise

[POLYPLEX CORPORATIONLTD]

Dear Expert

Can you please tell the Difference between Assessable Value , Transaction Value & Invoice Value in Central Excise with example 

[YAGAY andSUN]

Assessable valueis the value on which Central Excise Duty is paid.  It includes the cost of production + overhead exps and profit margin.  Now, there is no relevance of assessable value in the Central Excise Laws to calculate the Central Excise Duty.

Transaction Valueis the value on which a particular transaction of sale/purchase takes place between the two parties. Central Excise Duties are now calculated on the transaction value as per the new valuation rules.

Invoice Valueis the value which includes taxable amount plus all leviable taxes.  Invoice value cannot go beyond the Purchase Order amount.

 

AI Summary

Transaction value determines central excise duty liability under current valuation rules, replacing assessable value considerations. Assessable value historically reflected production cost, overheads and profit but is no longer used to compute duty; transaction value-the actual sale price between buyer and seller-is now the operative basis for calculating Central Excise Duty under current valuation rules; invoice value is the invoice amount comprising taxable value plus leviable taxes and is bounded by commercial terms like the purchase order.