Sad concept - very very urgent

Basic customs duty

Basic customs duty levied u/s 12 of Customs Act is generally 10% of non-agricultural goods, w.e.f. 1-3-2007.

Countervailing Duty (CVD)

· CVD equal to excise duty is payable on imported goods u/s 3(1) of Customs Tariff Act to counterbalance impact of excise duty on indigenous manufactures, to ensure level paying field.

· CVD is payable equal to excise duty payable on like articles if produced in India. It is payable at effective rate of excise duty.

· General excise duty rate is 10.30% w.e.f. 27-2-2010 (10% basic plus 2% education cess and SAH Education cess of 1%).

· CVD is payable on assessable value plus basic customs duty. In case of products covered under MRP provisions, CV duty is payable on MRP basis as per section 4A of Central Excise.

· CVD can be levied only if there is ‘manufacture’.

· CVD is neither excise duty nor basic customs duty. However, all provisions of Customs Act apply to CVD.

Special CVD

Special CVD is payable @ 4% on imported goods u/s 3(5) of Customs Tariff Act. This is in lieu of Vat/sales tax to provide level playing field to Indian goods. Traders importing goods can get refund. CVD is not payable if goods are covered under MRP valuation provisions/

Education Cess

Education cess of customs @ 2% and SAH Education cess of 1% is payable.

Total duty

Total import duty considering all duties plus education cess on non-agricultural goods is generally 26.85%

Other duties

NCCD has been imposed on a few articles. In addition, on certain goods, anti-dumping duty, safeguard duty, protective duty etc. can be imposed. Cess is payable on some goods imported/exported.

Safeguard duty

Safeguard duty can be imposed if large imports are causing serious injury to domestic industry. In addition, product specific safeguard duty on imports from China can be imposed.

Anti dumping duty

Calculation of customs duty payable is as follows -

Duty %

Amount

Total Duty

(A)

Assessable Value Rs

10,000

(B)

Basic Customs Duty

10

1,000.00

1,000.00

(C)

Sub-Total for calculating CVD '(A+B)'

11,000.00

(D)

CVD 'C' x excise duty rate

10

1,100.00

1,100.00

(E)

Education cess of excise - 2% of 'D'

2

22.00

22.00

(F)

SAH Education cess of excise - 1% of 'D'

1

11.00

11.00

(G)

Sub-total for edu cess on customs 'B+D+E+F'

2,133.00

(H)

Edu Cess of Customs – 2% of 'G'

2

42.66

42.66

(I)

SAH Education Cess of Customs - 1% of 'G'

1

21.33

21.33

(J)

Sub-total for Spl CVD 'C+D+E+F+H+I'

12,196.99

(K)

Special CVD u/s 3(5) – 4% of 'J'

4

487.88

487.88

(L)

Total Duty

2,684.87

(M)

Total duty rounded to

Rs

2,685

Notes – Buyer who is manufacturer, is eligible to avail Cenvat Credit of D, E, F and K above.

A buyer, who is service provider, is eligible to avail Cenvat Credit of D, E and F above. .

A trader who sells imported goods in India after charging

Vat/sales tax can get refund of Special CVD of 4% i.e. ‘K’ above