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Indirect tax first bit solutions May,2013 CA Final exams

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Indirect tax first bit solutions may,2013 ca final exams

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14 Replies

CA Vikas Agrawal (Practice) (363 Points)
Replied 24 May 2013

first and fifth questions answer given is wrong....

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(Guest)

@ vikas gi,

were the first & fifth went wrong.

the above first bit solution's are not my own.

i got it, from private coaching institute.

Nidhi (Student CA Final ) (226 Points)
Replied 24 May 2013

GVGR sir Demmurage will be added in Customs Valuation depending on the conditions for what & when is the Demmurage paid & also paid to whom & if you say you got this solutions from some Coaching Classes then its really time to tell all your friends & even others who are attending this & such type of coaching classes have to think about the Integrity of such classes & teachers playing with the future & career of the student for the Interest of their ( Classes Fees ) Income. Very Sorry state of affairs of the Teachers. Member GVGR can you tell the name of the classes who gave this solution, so I can also alert my friends if they are going / Planning to join this classes

Udit Gupta (CA Final Student) (352 Points)
Replied 24 May 2013

Nidhi, r u sure demurage will be added? It is incurred after import.

CA Manoj Jain (Chartered Accountant) (67 Points)
Replied 24 May 2013

I think demmurage charges incurred on port after unloading of goods will not be included in assessable value for the purpose of custom duty.. yeah if it would have incurred for lighterage or chartered vessel then it would form the part of assessable value...

Correct me if m wrong...

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Nidhi (Student CA Final ) (226 Points)
Replied 24 May 2013

Demmurage are of Two Types, One payable to Port Trust authorities when goods are not cleared within the prescribed time period ( Such Demm ) (is more of a Penalty / Rent for non clearence in Time & using the Port trust Premises for a Longer period) & such demm is Not added, But Demm paid to the Vessel Ship / Aircraft ( if its a Chartered by the Importer ) for making it wait &for a Lonegr time & not ( Causing Delay ) in Unloading the goods within the specified time such Demm has to be added. See explanation to rule 10(2) of Customs Valuation ( determination of value of Imported Goods) Rule 2007. I have not seen in detail the contents of the question in your Paper, But whatever it be I have gvn the detailed explanation when Demm would be added & when Not.

I hope I have clarified the Point to the best & fullest extent

(Guest)

'Demurrage charges' actually incurred by importer of goods are not includible in assessable value b,coz of the following reasons:

Demurrage charges are paid on account of the delay in clearing the goods from the port Rule10 Loading,un-loading & handling charges assosiated with the delivery of imported goods at place of importation shall be 1% of CIF value.It is immaterial whether they are actually ascertainable or not.

And in the case of Coromandal Fertilizers Ltd.(SC) it was held that as landing charges are assessed on a percentage basis,they cover thereby all aspects of landing charges and it is not open to the revenue to seek to add any amount thereto on the basis that this or that or the other was not covered thereby.

Therefore, as 1% has covered all the charges associated with the delivery at the port,demurrage charges can not be added again in the assessable value.

I HOPE SO EVERY 1 WILL GET CLARITY NOW.(the above explation for the point of may,2013 exam. Ist bit problem no. (e).

Aravind.. (CA) (1262 Points)
Replied 25 May 2013

For first question i think number of quarters has to be rechecked.

CA Vikas Agrawal (Practice) (363 Points)
Replied 25 May 2013

let me clarify you.......in first question no of quarters is 10 and not 9 as stated....understand the meaning of quarter ....it is not calender wise...in fifth question demmurage will be included....it was asked also in nov 12 special paper for mumbai .....

i doubt ur third answer also....it is wrong..

(Guest)

@ vikas gi,

Nov,2012 special examination paper held in mumbai.

is no were relevant to the may,2013 question first bit (e)

b,coz in special examination paper held in mumbai,the question clearly mentioned that importer paid rs 7500/- towards ship demmurage charges & rs 15,000/- towards lighterage & barge charges are includible according to rule 10(2).

but in may,2013 examination paper has not to be ADDED.

note: actually i dont want to post the above conclusion.i once again concluding to you that, the above solutions are not my ownnnnnnnnnnnnnnnnnnnnnnn.(i think u will know that very soonly.)