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
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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