Section 7(1) in The Customs Valuation (Determination of Price of Imported Goods) Rules, 1988.
(1)Subject to provisions of rule 3 of these rules, if the goods being valued or identical or similar imported goods are sold in India, in the condition as imported at or about the time a which the declaration for determination of value is presented, the value of imported goods shall be based on the unit price at which the imported goods or identical or similar imported goods are sold in the greatest aggregate quantity to persons who are not related to the sellers in India, subject to the following deductions :(i)either the commission usually paid or agreed to be paid or the additions usually made for profits and general expenses in connection with sales in India of imported goods of the same class or kind;(ii)the usual costs of transport and insurance and associated costs incurred within India;(iii)the customs duties and other taxes payable in India by reason of importation or sale of the goods.
