Assessable Value in Import Purchase Scenarion.
Can anybody please explain, what is the Assessable value in Import Purchase.
1) Whether it is Material Basic Price.
2) Value after discount calculation on basic price.
3) Value includes interest amount
4) Value includes Insurance amount
5) Value includes import freight charges.
Please brief me .
Thanks in Advance.
Pankaj Singh replied
In case of Import, always CIF Price get loaded on the Inventory. (CIF = Cost of Material - Discount + Insurance + Freight)
Discount if applicable. Generally we create a condition type as CIF Base Price that includes the above value. (Never create separate condition types for Cost, Insurance & Freight)
And Assessable Value = CIF Price + Landing Charges (This is not posted to FI, this is only for calculation purpose)