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Query related for custom valuation for ca/cs final

CA Final 396 views 3 replies

Dear Sir/Mam.

 

Please clarify:
 

whether the EC + SHEC shall be levy on the amount of BCD + ACD [u/s 3(1)]

or the EC + SHEC shall be levy ONLY on the amount of BCD.

Before the amendment, the EC & SHEC was applicable on Excise duty.

But after amendment the EC & SHEC on Excise duty has been omitted.

We impose ACD u/s 3(1) as if we imposed the amount of Excise duty.

Now the question arise that EC & SHEC are not applicable on Excise duty, so we impose EC & SHEC on the amount of ACD u/s 3(1) or not??

In earlier we charge EC & SHEC on the amount of BCD + ACD.

Now EC & SHEC is omitted on Excise, so whether the EC & SHEC be impose on ACD u/s 3(1)?
 

Please clarify as soon as possible..

 

Thanks

Replies (3)
Dear Shivam,

Additional Duty of Customs u/s 3(1) of the Customs Act, shall be charged the effective rate of Central Excise Duty applicable to the respective commodity.

As the cess amounts are no longer applicable on Excise duty, the Additional Duty of Customs shall also be chargeable only at the rate of Excise Duty alone i.e. If the rate of Excise Duty is 12.5%, Additional Customs
Duty shall also be 12.5% only. However, Customs cess has not been exempted and the same is chargeable @ 3% on the aggregate of Basic and Additional duties of Customs. In other words, if BCD is 10% and CVD is 12.5% on a product valuing Rs. 100/-, then BCD shall be Rs. 10, CVD shall be Rs. 13.75 and customs cess shall be calculated @ 3% on Rs. 23.75 which would work out to Rs. 0.71. Thus the total Customs Duty (without SAD) shall be Rs. 24.46.

Hope the above clarifies.

Thanks a lot..Raghuveer.


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