Import of tablet pcs

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This query is : Resolved

nalini (Querist)

17 July 2012 Dear Forum Members,

We are willing to enter Tablet PCs business (imported from china) and have a few questions regarding the same. I will be highly grateful if you can kindly help me with my questions. The details are as follows:

1) Suppose the base price for the product quoted by my manufacturer is $300. He then adds shipping cost as $10 (sea shipment) + Insurance $10 which makes the total CIF value as $320 (approx Rs 16,000/-)

2) Now the shipment arrives here in India and I produce the Bill of Entry for clearance. This is the point where the customs levy a duty on me and so I want to know the exact duty to be paid at this point. The products are Tablet PCs just like iPad.

3) Once the goods get cleared from customs, I procure them and store them in my warehouse. Afterwards, I sell those to individuals and organizations on sample, retail & wholesale basis. So what will be the VAT/CST/Service/Sales tax application to my product at this point. I will have to markup my product's MRP according to these taxes. Please provide me the details of the taxes which will be incurred to me while selling this product on a PAN-INDIA basis.

Also, in case I am missing out on something do let me know that as well. I will be really grateful to you.

Thanks and Regards,

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

18 July 2012 CST is a Central tax levied under CST Act, 1956 where in when there is a sale of goods between dealers of 2 different states, seller has o colect tax from the buyer at prescribed rate. If the dealer isa registered dealer, then assessee can sell at discounted rate of 2% if forms are used as prescribed in CST Act, 1956

VAT is new term for sales tax. the dealer has to levy tax at every stage of sale in intra-state sale unless goods are exempted from tax.

it will be best you if you registered inVAT department for refund of 4% Additional Duty of Customs in pursuance of Notification No.102/2007-Customs dated 14.9.2007

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