Indirect taxation-Customs Act
Meekha
(Querist) 18 January 2010
This query is : Resolved
Can any one please help me to solve this and compute(i)Assessable value(ii)Customs duty:
A imports by air from USA a Gear cutting machine complete with accessories and spares.Its HS classification is 84.6140 and Value US $ FOB 20,000.
other relevant date/information:
(1) At the request of importer, US $ 1000 have been incurred for improving the design,etc.of machine,but is not reflected in the invoice,but will be paid by the party.
(2) Freight-US $ 6000
(3) Goods are insured but premium is not shown/available in invoice.
(4) Commission to be paid to local agent in India Rs,4500
(5) Freight and insurance from airport to factory is Rs.4500
(6) Exchange Rate is US$1=Rs.42
(7)Duties of Customs:Basic-30% CVD-14%
tarun goyal
(Expert) 05 March 2010
dear friend answer to your query is: Computation of Assessable Value
FOB Value of Machine US $ $ 20,000
Add: Expenditure for improving design $ 1,000
Add - Freight limited to 20% of FOB [Rule 9 (2)] $ 4,000
Insurance @ 1.125% of FOB [Rule 9(2)c(iii)] $ 225
Sub-Total $ 25,225
Sub-Total In Rs @ Rs 45 per Rupee Rs 11,35,125
Add - Agents Commission [Rule 9(1)(i)] Rs 4,500
Total CIF Value Rs 11,39,625
Add – Landing charges 1% of CIF Rs 11,396
Assessable Value Rs 11,51,021
Duty payable will be as follows –
(ii) Gear cutting machine Complete with accessories and spares
Basic Customs Duty @ 25% 2,87,755.25
Calculation of Additional Duty - Additional duty (CVD) is payable on AV + Basic Customs Duty. Thus, CVD @ 16% is payable of Rs 14,38,776.25 (11,51,021 + 2,87,755.25). Hence, CVD payable is 2,30,204.20
Calculation of Special Additional Duty (SAD) - Special Additional Duty @ 4% is payable on AV + Basic + CVD. Thus, SAD payable is Rs 66,759.22 i.e. 4% of Rs 16,68,980.50 [11,51,021+ 2,87,755.25+2,30,204.20]
Total duty payable is Rs 5,84,718.65, comprising of Basic 2,87,755.25 + additional i.e. CVD 2,30,204.20 + Special Additional Duty 66,759.20.
you can change it according to the change in statement as the above calculation is on the basis of exchange rate 45 and CVD is 16%. try and get answer.still any problem get back to me.
