Duty

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kawal

kawal (Querist)

23 July 2009 what is cvd?
what is excise duty?
How to calculate basic duty?

Vishnu Saboo

Vishnu Saboo (Expert)

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.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

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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