21 September 2015
we are an EOU for manufacfturing telecom equipment with 0% Basic Custom Duty, going to make DTA sale under Notification 23/2003-CE dt. 31/03/2003.
As Sr. No. 2 of aforesaid notification, we are required to pay 50% of applicable custom duty, but 1st proviso says confuses it with normal excise duty and 2nd proviso provides that 1st proviso is NA in case Nil rate of duty under sec 12 of Custom Duty.
What shall be the applicable duty?
Is it 50% of applicable Custom Duty which 8.70% as on? or Will be it be normal excise duty i.e. 12.5%
or Since that basic duty is 0% in CTA, it will be again 8.70% i.e. 50% of custom duty
CAclubindia
