Aswin (Sr Accountant) (25 Points)
04 September 2015DEAR SIR
WE ARE DOING IMPORT BUSSINESS
VALUE DECLARED IN BILL OF ENTRY 10000.00 USD
BUT THE CUSTOMS HAS ENHANCED THE VALUE 20% (I.E 12000.00USD)
EXCHANGE RATE 64.00
FOR THE SAME WE HAD GIVEN ENHANCMENT LETTER THAT WE AGREED THE VALUE 20% INCREASED
NOW IN VAT RETURNS WE HAVE TO WRITE ASSESSABLE VALUE (12000.00USD *64 = 7680000.00) OR THE DECALRED VALUE OF THE GOODS IN IMPORT PURCHASES (10000.00 USD * 64 = 640000.00)
PLS GIVE US ANY RELEVANT CASE LAWS FOR THE SAME
dhanamganesh@gmail.com
(private service Accountant)
(80 Points)
Replied 14 September 2015
sir,
plnote that u hv to show the actual cost of the product to the assessable value on which u are going to charge vat/cst accourding the percentage. so, in this case u have to take the assessable value of 12000 $ (FOB)* rate multiplied with the rate of conversion the the date of clearence(not on rs.64 but it may vary from thedate of intimation to date of clearing,) and cost of clearing forwarding charges customs duty paid and the local freight andinsurasnce to reach the material upto toyour godown.
12000 $ * say 64.5
C Duty say 12.5%
Cess//Shecess 3% on 12.5%
Clearing forw chgs x
freight to port to godown x
insurance (if FOB) x
total will be assable value for vat/cst
charging vat or cst on the above.
with regards
p.r.ganesh
Aswin
(Sr Accountant)
(25 Points)
Replied 14 September 2015
thanks for u r reply
pls clarify this doubts
on what basis i had to charge vat
asseable value+ c duty+other expenses
or
decalred value + c duty + other expenses
with out selling the goods my account books will show the profit of 20%
awaiting for ur early reply
can u pls justify regarding this matter
jaya krishna
(Chartered Accountant)
(262 Points)
Replied 14 September 2015
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
