This valuation method is used if all other methods are not applicable
(i.e neither tariff value nor compounded levy scheme nor duty based on production capacity or retail sales price are not applicable)
In this case only, transaction value method is used for valuation
What is transaction value in Excise?
Transaction Value means
Price actually paid/payable for goods
And includes
Any amount which buyer is liable to pay
by reason of or in connection to sale
It includes any amount charged for
- Advertisement/Publicity
- Marketing
- Storage
- Warranty
- Commission etc
It does not include
- Excise duty
- Sales tax
- Any other tax
Exam Questions
Question 14
Define the term ''transaction value" as per Central Excise Act, 1944.
-a-
As per section 4 of the Central Excise Act, 1944, transaction value means the price actually
paid or payable for the goods, when sold, and includes in addition to the amount charged as
price,-
-
any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of,
or in connection with the sale, whether payable at the time of the sale or at any other
time, including, but not limited to, -
any amount charged for, or to make provision for, advertising or publicity, marketing and
selling organization expenses, storage, outward handling, servicing, warranty,
commission or any other matter; -
but does not include the amount of duty of excise, sales tax and other taxes, if any,
actually paid or actually payable on such goods.
