Assessable value determination

[chaganti srinivas]

Dear Sir, For the sales to the Mfg's depot, what are the other charges need to be considered in assessable value (like freight, insurance, freight charges from Depot to the dealer)?.

[Ravi Chopra]

If your query of for central excise, there is no requirement of inclusion of individual head of expenses in the value of material sent to depot of manufacturer. You need to pay duties of excise on the sale value of depot at the time of removal of goods from the factory premises.

AI Summary

Assessable value: for central excise, duty is payable on depot sale value at removal; ancillary charges need not be added. Assessable value for goods sent to a manufacturer's depot is the sale value at removal from the factory; for central excise there is no requirement to include separate ancillary expense heads (such as freight or insurance) in that value, and duty is payable on the depot sale value at removal.