Section 14(1) in the Customs Act, 1962 SECTION 14. Valuation of goods. — (1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force, the value of the imported goods and export goods shall be the transaction value of such goods, that is to say, the price actually paid or payable for the goods when sold for export to India for delivery at the time and place of importation, or as the case may be, for export from India for delivery at the time and place of exportation, where the buyer and seller of the goods are not related and price is the sole consideration for the sale subject to such other conditions as may be specified in the rules made in this behalf : Provided that such transaction value in the case of imported goods shall include, in addition to the price as aforesaid, any amount paid or payable for costs and services, including commissions and brokerage, engineering, design work, royalties and licence fees, costs of transportation to the place of importation, insurance, loading, unloading and handling charges to the extent and in the manner specified in the rules made in this behalf: Provided further that the rules made in this behalf may provide for,- (i) the circumstances in which the buyer and the seller shall be deemed to be related; (ii) the manner of determination of value in respect of goods when there is no sale, or the buyer and the seller are related, or price is not the sole consideration for the sale or in any other case; (iii) the manner of acceptance or rejection of value declared by the importer or exporter, as the case may be, where the proper officer has reason to doubt the truth or accuracy of such value, and determination of value for the purposes of this section : Provided also that such price shall be calculated with reference to the rate of exchange as in force on the date on which a bill of entry is presented under section 46, or a shipping bill of export, as the case may be, is presented under section 50.

Transaction Value Means: The price **actually paid or payable** for the goods when goods are sold, for export to India for delivery **at the time and place of IMPORTATION OR** for export from India for delivery **at the time and place of EXPORTATION** where the buyer and seller are NOT RELATED price is the SOLE CONSIDERATION for sale **Provided that** Transaction value of imported goods shall include in addition to the price aforesaid any amount paid or payable for Cost of service including commission and brokerage,engineering,design work,royalties and license fees as per Rule 10(1) of Custom Valuation (Determination of Price of Imported Goods) Rules,2007 **Cost of transportation** to the place of importation, **insurance,**loading,unloading and handling charges as per Rule 10(2) Custom Valuation (Determination of Price of Imported Goods) Rules,2007.