Abatement as a percentage of retail sale price

[Kishan Barai]

Respected Sir/ Madam

'what is Abatement as a percentage of retail sale price ? '

I have tried to google it but unable to get accurate answer, please help. Thank you in advance.

[Ganeshan Kalyani]

MRP is always higher than the transaction value because it is the maximum price to be collected from ultimate customer. There are two types of value on which excise duty is to be calculated. One is on advolrem rate and second is MRP. The abatement rate is given in Notification No. 49/2008-Ce (NT). Thanks.

[Kishan Barai]

Thank you very much Ganeshan Kalyani Sir for a prompt response. Thanks a lot.

AI Summary

Abatement as percentage of retail sale price reduces the taxable value when MRP-based excise valuation applies. The summary explains that MRP is typically higher than transaction value and that excise duty may be computed either on an ad valorem basis or on MRP; when MRP-based valuation is used, an abatement as a percentage of the retail sale price reduces MRP to a deemed taxable value, and the specific abatement percentages are prescribed by the relevant government notification.