Invoice value Vs Assessable Value

Now allow us to debate about the difference between Assessable value and Invoice value.


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

Invoice value

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


So the Invoice value is that the particular amount payable to the seller by the customer 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.


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

Assessed value

Assessed value isn't actual value of any asset or product; it is the worth 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 that the entire value of products includes the worth of products, transportation cost up to the buyer’s location and insurance. 


There is a separate calculation method to hunt out assessable under Customs Act for import and export of products .
We have written a separate post on ‘how to hunt out assessable value’ during this website. you'll click to read same also.