MRP based excise duty calculation

[KRISHNA BHATI]

Dear sir,

how we can calculate the MRP based excise duty .

[YAGAY andSUN]

Generally, products falling under MRP do get the abatement and on the netoff assessable value, taxes are computed.

Example:-

Product A -  MRP Rs. 100/-

Less abatement Rs. 33/

Net assessable value Rs. 67/-

Excise duty will be calculated on this Rs. 67/-

AI Summary

MRP-based excise duty: apply prescribed abatement then compute duty on the net assessable value. MRP-based valuation for excise duty requires deducting the prescribed abatement from the MRP to arrive at the net assessable value, and excise duty is computed on that net assessable value.