We know that

Tax = Rate * Amount

Determining this amount on which Rate of duty is charged is called Valuation

There are different methods of Valuation prescribed in Central Excise Act,

These are called Basis of Computing Duty Payable

  1. Excise
  2. Valuation

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 9 years. He also provides Accounts Tax GST Training in Delhi and Pune.