TaxTMI 
TaxTMI 
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.
Abatement as a percentage of retail sale price
20 Mar 2016 
2 Replies 
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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. (AI Summary)
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. (AI Summary)