Illustration: 1 Dabang Ltd. Imported a machine from Australia at a FOB value of Rs. 38, 00,000 (inclusive of accessories of market value Rs. 5, 00,000 compulsorily supplied along with the machine). Other details are as follows:
(i) FOB value includes Rs. 8, 00,000 attributable to post – importation activities to be carried out by the seller.
(ii) Dabang Ltd. had supplied raw material worth Rs. 10, 00,000 to the seller for the manufacture of the said machine. (iii) Design and development charges were paid to a consultancy firm in Australia Rs. 2, 00,000 (INR converted).
(iv) Dabang Ltd. also spent an amount of Rs. 75,000 in India for development work connected with the machinery.
(v) The goods were imported by vessel and actual cost of transport is Rs. 9, 25,000.
(vi) The importer has also paid demurrage charges Rs. 50,000 and lighterage and barge charges Rs. 25,000 in addition to the said 9, 25,000.
(vii) The importer also paid Rs. 75,000 for transportation of goods from port of entry to Inland Container Depot.
(viii) Loading, unloading and handling charges – Rs. 54,900.
(ix) The actual cost of insurance is Rs. 1, 00,000.
(x) Foreign exporters have an agent in India. Commission is payable to the agent Rs. 1, 90,000.
(xi) Compute assessable value assuming that the amount attributable to post importation activities is not payable as a condition of the sale of imported goods.
(xii) If rate of BCD on machinery is 10% and on accessories it is 25%, then at which rate machinery and accessories will be assessed? I
llustration: 2 From the following particulars given by rancho Ltd., an importer manufacturer, calculate assessable value, customs duty payable and amount tax credit that can be availed by Rancho Ltd.
(i) Sum total of FOB, freight, loading, unloading & handling charges and insurance charges = 1,38,000 US Dollars;
(ii) Air freight, loading, unloading & handling charges = 35,000 US Dollars;
(iii) Insurance cost 3,000 US Dollars
(iv) Date of presentation of bill of entry for Home Consumption : 30.05.2017 [Rate of BCD 25%; RBI Exchange rate: Rs. 44.50]
(v) Date of grant of Entry Inward Order: 27.06.2017 [Rate of BCD 25%; RBI Exchange rate: Rs. 43.50]
(vi) The banker realized the payment from the importer at the exchange rate of Rs. 45.50 per dollar.
(vii) Rate of exchange per dollar notified by the CBEC (as made effective from 26.04.2017 = Rs. 44.70; from 27.05.2017 = Rs. 45 and from 25.06.2017 = Rs. 44).
(viii) Rate of IGST of such goods in India: 12%.
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