24 July 2009
CVD = Counter Valling Duty, which calculates on Basic value+Custom Duty (EXCISE DUTY+EDU CESS+S & H. S. CESS) Excise Duty = Duty calculates on Assesable Value of Good.
24 July 2009
"CVD" means the Additional Duty of Customs levied under Section 3 of the Customs Tariff Act, 1975. This is often called "Countervailing Duty". This duty is equal to excise duty levied on a like product manufactured or produced in India. This duty is leviable on Value of goods + customs duty payable.
For e.g assume that Customs Value of goods is Rs. 10,000, Custom duty is 30% and excise duty on similar goods manufactured in India is 16%.
Then, Basic customs duty is Rs. 3,000. CVD is payable on value + basic custom duty i.e on Rs. 13,000[Rs. 10,000+3,000] Thus, CVD payable is Rs. 2,080 (16% of Rs. 13,000]
Excise is a duty on excisable goods manufactured or produced in India. excise duty is duty on manufactured levied it following 3 condition must be satisfied 1.duty on goods 2.goods must be maunfactured in india 3.goods must be excisable
Basic Custom Duty is levied as a percentage of Value as determined u/s 14(1)
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