(1) In cases where the excise duty on any product or service, produced inside Nepal, is to be levied according to value (ad valorem), the excise duty shall be levied taking the following price as the basis:
(a) The factory price determined by a producer at the time of selling an excisable goods;
(b) In case of service, the price of the service at the time of selling it; or (c) The price specified by the Department on the basis of cost of production or other reasonable basis.
(2) In case of goods to be imported into Nepal, the excise duty shall be levied on the price determined after adding the customs duty on such goods to the price determined for the purpose of levying customs duty on them.
(3) In case of services, the excise duty shall be collected from the price determined on the basis of the invoice.
(4) For the purpose of collecting excise duty, the Department may re-determine the price or determine additional price, as required.