Assessed Value Vs Invoice Value

Assessed value and invoice value both are used in accounting. But there is difference between assessed value and invoice value which we are explaining below.

Meaning of Assessed Value 

Assessed value is not actual value of any asset or goods, it is the value which is used for calculation of tax. For example, custom duty and excise duty is calculated on assessed value of goods. When property tax is calculated then assessed value is used instead of invoice value. In simple words, it is market value of any asset or product. We do not deduct any discount which is given by seller to buyer. Following is its example.

Meaning of Invoice Value 

Buyer and seller meets each other. They talk about the products. When buyer accepts the product of seller. He may start to bargain. So, seller may give the discount on MRP. There may be VAT which may be included in the sales value. There may be also delivery charges which may be included in it. So, 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. 

Related : Tax Invoice Format