Mrp based cvd
This query is : Resolved
kunal umarani
(Querist)
28 March 2012
Dear All,
Plz explain me how to calculate mrp based cvd
what is abatement? explain me with brief calculation
Plz explain me how to calculate mrp based cvd
what is abatement? explain me with brief calculation
RAMESH KUMAR VERMA
(Expert)
28 March 2012
At the time of import of goods, in addition to basic customs duty, an additional duty of customs (CVD) is also levied among various other duties.
Since the CVD is equal to duties of excise on the similar products, the value to determine CVD is calculated in the same manner in which the value if determined under the provisions of Central Excise.
In central Excise, there are three main provisions to determine the value of manufactured goods:
a. Transaction Value - Section 4
b. MRP based value - Section 4A
In addition, in certain cases, central government specifies certain goods shall be chargeable to central excise on the basis of Tariff Value under section 3(2) of the Central Excise Act, 1994. Therefore, where the tariff value under central excise has been declared, the transaction value or MRP based valuation become redundant.
for explanation purpose read the link:
https://www.webconnectindia.com/web/premier/pdf/9.pdf
Since the CVD is equal to duties of excise on the similar products, the value to determine CVD is calculated in the same manner in which the value if determined under the provisions of Central Excise.
In central Excise, there are three main provisions to determine the value of manufactured goods:
a. Transaction Value - Section 4
b. MRP based value - Section 4A
In addition, in certain cases, central government specifies certain goods shall be chargeable to central excise on the basis of Tariff Value under section 3(2) of the Central Excise Act, 1994. Therefore, where the tariff value under central excise has been declared, the transaction value or MRP based valuation become redundant.
for explanation purpose read the link:
https://www.webconnectindia.com/web/premier/pdf/9.pdf
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- MSME disclosure and disallowance
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
