Base value for Excise calculation

[Former Member]

Hi SD Gurus,

Is <b>Excise duty</b> calculated on the basis of gross value of the material.?? what happens in case there is some discount given to the customer? Pleae confirm.

Does <b>assement value</b> is considered for evaluating the excise duty..??

Gupta.P

[Former Member]

resolved

[Former Member]

hi

as far my understanding either the exise or any other tax its caluculated on the base value of that material not on the gross value.i hope this would clarify ur doubt on caluculation of excise on discount

regards

giri

[Former Member]

Thanks for the same Giri.

But Can somebody please give more clarity on the same.

The base value can be determined by the company itself or excise dept.s approval is required.

Gupta.

[Former Member]

Hi Gupta,

The base value needs to be declared by the company to the excise department. Based on this value the excise duty is calculated. Irrespective the discount given the excise duty is to be computed on the base value

prasanna