1. Outward Handling Charges
It is included in transaction value if
It is upto place of removal
+
If incurred by buyer as condition for sale of goods
2. Packing
Normally packing cost is included in Assessable Value
In case of reusable or durable packing, its life is limited. Amortized cost is already included in cost of product.
Hence separate addition is not necessary
However if audit reveals that cost of product does not include amortized cost, then this to be taken
3. Dharmada Charges (Charity Charges) recovered from customer
It is included in Assessable Value
4. Design/Development/Engineering Charges
T hese are also included if goods cannot be produced without them
5. Bought out items and accessories
Essential Items-Included
Optiional Items like accessories-not included
6. Consultancy charges
It is included, If it is related to design and layout
And for activities upto place of removal
7. Testing and Inspection Charges
It is included if done by seller
However if buyer does it through third party, then not includible
8. Errection, installation and Commission charges
It is not included if it results to immoveable property as immovable items is not excisable
9. Predelivery inspection charges and after sales services
It is included if collected by manufacturer
10. Freight
It is normally included as it is after place of removal
However charges from factory to depot will be included
11. Transit Insurance
Transit insurance is insurance charges to secure goods on transport
Hence it is also transportation cost like freight, they are not included
12. Delayed payment charges/ Interest on late Payment
It is of the nature of interest.
It is not included if it is shown separately and interest is on the price of goods
13. Bank Charges for collection of Sale proceeds
It is not included as it is not by nature of or by reason of sale
14. Notional interest on Deposit/Advance received
It is normally not included unless it can be proved that price is lowered because of sale
15. Discount (Trade discount/Cash discount)
All discounts are reduced while calculating transaction value
However, discount should be actually passed on to the buyer
