It means price actually charged is inclusive of duties

In this case, total amount received from customer is Amt + tax

Format of Computation

Price Actually paid for goods sold


Money value of additional consideration


Price cum duty


Sales Tax

Net Price cum duty


Duty payable= (Net price cum duty x Rate of duty)/(100+ Rate of duty) 

Assessable Value= (Net price cum duty x 100)/(100+ Rate of duty)



A sells the goods for RS 200 including taxes

(12.36% Excise duty is included in it)

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A sells the goods for RS 200.He does not charge excise duty separately on goods as he belived his goods were exempt

(But later he came to know that actual rate of duty was 12.36%)

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A sells goods to B for RS 200 including taxes to B

A collected Rs 50/piece separately from B but did not show it in invoice

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A sells goods to B for RS 200 including taxes to B

He charged 8% duty

Actual duty rate is 12.36%

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Exam Questions

Question 13
Explain the term “price cum duty” as per Central Excise Act, 1944.

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.