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Customs duty computation for IDT CA final help

CA Final 1533 views 6 replies

For customs duty computation problem, should v calculate social welfare surcharge @ 10% or e cess @ 3% for nov 18 exams? Should v answer based on dates or for all problems is it still ecess? Pls help

Replies (6)
CIF value of the goods [US $ 40,000 X Rs. 45] Rs. 1800,000
B. Add – 1% landing charges [Rs. 1800,000 X 1%] Rs. 18,000
C. Assessable value of the goods Rs. 1818,000
D. BCD @ 10% of C Rs. 181,800
E. EC & SHEC @ 3% Rs. 5,454
F. Assessable value for the purpose of ADC u/s 3 (5) [C + D + E] Rs. 2005,254
G. ADC u/s 3 (5) @ 4% on F Rs. 80,210
H. Landed value of goods [F + G] Rs. 2085,464
The value notified for anti-dumping duty is US $ 60 per kg X 1000 kgs X Rs. 45 = Rs. 27,00,000/-. Hence,
ADD = Rs. 2700,000 – Rs. 2085,464 = Rs. 614,536/-
3. Write difference between sec. 74 and sec 75 of customs act, 1962? [Refer notes]
4. State the provision of customs act relating to disposal of goods not cleared within specified period u/s
48? [Refer Sec. 48 and also Sec. 151]
5. Consignment of 800 MT of edible oil of Malaysian origin was imported by a charitable organization in
India for free distribution to BPL citizens in a backward area. Nominal price of US $ 10 per MT was
charged for consignment to cover the freight and insurance charges. Custom house found that at or
about the time of importation of this gift consignment, there were following imports of edible oil of
Malaysian origin.
Quantity Imported (MT) Unit price in US $ (CIF) Quantity Imported (MT) Unit price in US $ (CIF)
20 260 780 160
100 220 400 180
500 200 900 175
Rate of exchange 1 US $ = Rs. 43 per US $. BCD is 15%. No CVD or special CVD. Calculate custom duties
payable. [Nov-08, 5 marks]
Solution – In the instant case, while determining the transaction value of the goods, following factors need
So no need to compute social welfare surcharge @ 10 % for customs duty computation???
Yes Thomas no need to compute SWS..it's not applicable for Nov 18
Thnk u for the information
Wef 02-02-18 social welfare surcharge will be imposed on imported goods. So see if the txns in the question takes place on or after that date . If however it's a date before 02-02-18 u have to apply EC and SHEC
This is wat i asked ND hitesh (above) msged no need to consider abt social welfare surcharge for all probs and it is not applicable for nov 18.. So pls tell the correct situation.? . Is it applicable or not or should v apply it based on dates?


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