Custom Duty Calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2011 We import used machines from Romania, Here is a problem in calculation of Custom Duty. We imported some machines at Purchase invoice of Euro 2500/-, 3000/- & 3500/- for Qty of 1,1,& 2 Nos. but custom duty was calculated by Govt.Officer of Euro 3050/-, 3660/- & 4270/- respectively. Exchange Rate for the day was 1 Euro = INR 64.95,Total Weight was 20500 Kg. Now Please tell me that

1. Why & how Duty was calculated by revised price not according to price of our Invoice?

2. What will be the total amount of custom duty?

CA Navin Jain

CA Navin Jain (Expert)
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19 July 2011 Invoice value is increased by 22% by the custom department.

In your case, Custom duty is not being paid on the invoice value, its being paid on the assessable value determined by custom department.

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2011 Sir, Why it is increased by 22%, Can you tell me how the custom deptt. determine the rate of increment of purchase invoice?

Please Reply earlier.

CA Navin Jain

CA Navin Jain (Expert)
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19 July 2011 in the your case, euro rate is less then the rate of the same product in the India,

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2011 I am unable to understand. Please tell me in details.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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19 July 2011 custom duty is imposed on assessable value .

please download this calculator from the below mentioned link :-

https://www.caclubindia.com/forum/custom-duty-calculator-60289.asp

otherwise if you found any discrepancy tell.

Regards,

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