Import vat returns

DEAR SIR

WE ARE DOING IMPORT BUSSINESS

VALUE DECLARED IN BILL OF ENTRY 10000.00 USD

BUT THE CUSTOMS HAS ENHANCED THE VALUE 20% (I.E 12000.00USD)

EXCHANGE RATE 64.00

FOR THE SAME WE HAD GIVEN ENHANCMENT LETTER THAT WE AGREED THE VALUE 20% INCREASED

NOW IN VAT RETURNS  WE HAVE TO WRITE ASSESSABLE VALUE (12000.00USD  *64 = 7680000.00) OR THE DECALRED VALUE OF THE GOODS IN IMPORT PURCHASES (10000.00 USD * 64 = 640000.00)

PLS GIVE US ANY RELEVANT CASE LAWS FOR THE SAME

 

 

Replies (3)

sir,

plnote that u hv  to show the  actual cost of the product to the assessable value on which u are going to charge vat/cst accourding the percentage. so, in this case u have to take the assessable value of 12000 $ (FOB)*   rate multiplied with the rate of conversion the the date of clearence(not on rs.64 but it may vary from thedate of intimation to date of clearing,) and cost of clearing forwarding charges customs duty paid and the local freight andinsurasnce  to reach the material upto toyour godown.

12000  $   *   say 64.5

C Duty   say   12.5%

Cess//Shecess   3%  on 12.5%

Clearing forw chgs     x

freight to port to godown   x

insurance (if FOB)           x

total will be assable value for vat/cst

charging vat or cst on the above.

with regards

p.r.ganesh

thanks for u r reply

pls clarify this doubts

on what basis i had to charge vat

asseable value+ c duty+other expenses

or

decalred value + c duty + other expenses

with out selling the goods my account books will show the profit of 20%

awaiting for ur early reply

can u pls justify regarding this matter

You will submit the department to proof of price payable to the seller then you can pay Tax on transaction value... Which includes cost plus c duty plus other ecpenses. If your not submitted proof may you can take assesable value.. Wait another expert advice

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