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New practice manual (dec2015) edition query

Final 311 views 1 replies

madhu

Student

42 Points Joined April 2009

Dear Fellow Final Students,

Did any one of you get a chance of going through the new Practice Manual Customs valuation Chapter?

I mean, in case of Air Freight sums, the calculation is different compared to the previous PM's. What they have done is instead of taking limit of 20% on FOB Value, they have taken 20% on FOB Value as per Customs(i.e. FOB+ Design and Development Charges).

You can look at Question No: 12 and Question 19 of PM customs valuation.

Can someone please tell me as to how we are supposed to do these sums?Why did they change the method?

Replies (1)

Guest

yes it is changed as per the querries received by the institute. earlier it was a mistake and now it has been rectified. If the question specifically says that it should be as per customs customs then we have to do it as instructions given. ICAI has corrected their mistake. you should also follow the same new method.