Mrp based cvd

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kunal umarani (Querist)
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28 March 2012 Dear All,

Plz explain me how to calculate mrp based cvd

what is abatement? explain me with brief calculation

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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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

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