Difference between Invoice value and Assessed value

Assessed Value Vs Invoice value

 

Now let us discuss about the difference between Assessable value and Invoice value.

 

What is assessed value? How does it work in an Import export business?

 

Assessed value

Assessed value is not actual value of any asset or product; it is the value which is used for calculation of tax. Assessed value is used to calculate the custom duty and excise duty instead of invoice value.  

 

Usually assessed value is the total value of goods includes the cost of products, transportation cost up to the buyer’s location and insurance. 

 

There is a separate calculation method to find assessable under Customs Act   for import and export of goods.  We have written a separate post on ‘how to find assessable value’ in this website. You may click to read same also.

 

What is Invoice value?  How does Invoice value play in any type of Business?

 

Invoice value

Invoice value is real value which any buyer has to pay when he buys the goods from any seller. For calculating the invoice price we do all the adjustments relating to discount, VAT and delivery cost. ‘Invoice Value’ includes GST also.

 

So the Invoice value is the actual amount payable to the seller by the buyer after entering in to a business contract.  Such business contract decides the responsibility of bearing transportation, insurance, loading and unloading, mode of transport etc. mutually agree between buyer and seller.

 

The above information describes about Invoice value and Assessable value.  We hope the above information on the difference between assessable value invoice values helps you.

 

Share below your views on the difference between Invoice values Vs. Assessable value

 

 

 

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Comments


vishad waghela: simple and lucid to understand

Muhammad Athar: Kindly elaborate about bank contract, LC and other terms that are used in imports

Suman Sarkar: Why the FOB value is different from the INVOICE value of a same two invoices under a same LC Number?? I mean a LC No. has Two invoices along with Same Invoice value but the FOB value of them are are difference. Please give feed back to my email id.

KaiwanAttique: Teacup Malteses

santhosh: Trust this email finds you fine. I have a come across your profile in google. I am approching you directly to get some information/advice regarding custom duty formalities in India when importing items from Malaysia. I am more than happy to call and discuss if you can share your mobile number. I am seriously working on some ventures and may need your professional servies. You quick response shall be appreciated.

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