Hello Everybody on this forum I want to ask you one querries
I want to strat importing electronic product ( Memory cards) from china to India, but I have no idea about
1) I heard about custom duty but that concept yet not be cleared for me
2) how much taxes i have to pay ? Please give me the details to start my business and kindly to the needful
Thanking you
Expected your valuable guidance
Sir,
You can see in every side of trasaction, it will attract any type of tax, like......
- by importing - We need to pay Customs Duty
- by Sale - We need to pay Sales Tax
- by having income - We need to pay incometax
- by providing Service - We need to pay service tax
- by having Wealth - We need to pay wealth tax
- by manufacturing - We need to pay Excise Duty etc........
As we said, When we Importing the goods from other country, we need to pay Customs Duty.
Custom Duty is imposed under the Indian Customs Act formulated in 1962 by the Constitution of India under the Article 265, which states that “no tax shall be levied or collected except by authority of law. So, the Indian Custom Act was introduced that allow the Central Government to collect the taxes under the name of Custom Duty.
Custom Duties are usually levied with ad valorem rates and their base is determined by the domestic value 'the imported goods calculated at the official exchange rate. Similarly, export duties are imposed on export values expressed in domestic currency.
For Customs Duty Calculation :-
1- CIF Value : FOB value + Freight Amount + Insurane Amount
2- Landing Cost : (CIF * Exchange Rate * Quantity) * 1%
3- Assessable Value : (CIF * Exchange Rate * Quantity) + Landing Cost
4- Basic Custom Duty : Assessable Value * BCD Percentage
5- Counterveling Duty (MRP) : (MRP * (100-Abaitment) * Quantity) * CVD Percentage
6- Counterveling Duty (Non MRP) :( Assessable Value + 10%) * CVD Percentage
7- CESS on Duty : BCD + CVD * 3%
8- SAD (if applicable) : (Assessable Value + BCD + CVD + CESS)*4%
as per the above you can calculate your duty.......
For your Memory Card, The following duty derivatives are applicable.
1- BCD - no BCD
2- CVD - 6%
3- CESS - 3%
CAclubindia
