Party A - XYZ Corp
Party B - XYZ (I) Pvt. Ltd.
Party C - ME.
XYZ (I) Pvt. Ltd. is a holder of a SVB Order.
"XYZ (I) Pvt. Ltd." intiated the import of a material and made a HSS to "ME".
XYZ (I) Pvt. Ltd. transfer pricing is Rs.580.00 (In INR).
XYZ (I) Pvt. Ltd. sold the goods to "ME" at Rs.730.00. The Agreement of HSS reads actual sale price and not CIF + 2%.
What is the assessable value for calculation of Customs Duty.? Rs. 580.00 or Rs.730.00 or Something Else.
Assessable Value (AV) is the 'Value' on which duty is payable as a percentage. Generally, by 'Value', we understand the price as mentioned in Bill or Invoice. However, for excise purposes, it is not possible to fully rely on such price as (a) Duty is payable even if goods are not sold (b) It is desirable to have uniform policy in fixing the AV (c) Chances of manipulation in such price should be minimum.
HENCE, RS. 730.00 WILL BE ASSESABLE VALUE.
REGARDS
Murali and Sumeet Chartered Accountant
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