Calculation of Custom Duty

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This query is : Resolved

CA. Mala Rohara (Querist)

15 March 2010 A company wants to import a seperator from Germany. Purchase Price is Euro 115000. This price is CIF by sea. ITC HS code is 8421 19 10. What will be the value of custom duty. How it is calculated?

shakuntala chhangani

shakuntala chhangani (Expert)

31 March 2010 hello mala, For calculation of custom duties we need to know the value of FOB first. To this FOB we have to add Freight (if known than actual if not known than at 20%of FOB) & Insurance (if known than actual if not known than at1.125% of FOB)we get CIF value. To this we have to add 1% for cost of services. We get Assessable value and on such AV we have to calculate Basic custom duty @ 10%, Additional Custom duty @ Basic Excise duties, 4% for additional custom duty in lieu of VAT. all such informations is required for calculating duties. Regards CA Shakuntala Chhangani. if you want more clarification you can revert back to me.

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