Kapil Gems Importers imported a machine with accessories from UK. Compute the customs duty payable thereon from the following information : (i) CIF value of machine (inclusive of accessories) UK Pound 25,000. (ii) CIF va

CS Executive · Tax Laws and Practice · PYQS · December 2024
Kapil Gems Importers imported a machine with accessories from UK. Compute the customs duty payable thereon from the following information : (i) CIF value of machine (inclusive of accessories) UK Pound 25,000. (ii) CIF value of accessories compulsorily supplied along with the machine (not shown separately) UK Pound 1,500. (iii) Bill of entry filed on 02-06-2024 on this date Rate of BCD is 10%; and currency exchange rate as notified by CBIC ₹108 per UK Pound. (iv) Date of entry inward 05-06-2024 on this date Rate of BCD is 12%; and currency exchange rate as notified by CBIC ₹110 per UK Pound. (v) Rate of Social Welfare Surcharge (SWS) is 10%. (vi) Integrated tax payable u/s 3(7) of the Customs Tariff Act, 1975 is 18%. (vii) There is no GST compensation cess and other charges.

Answer & Explanation:

Computation of custom duty payable by Kapil Gems Importers Particulars Amount (₹) CIF value of machine (inclusive of accessories) UK Pound 25,000 Assessable Value in Indian currency (currency exchange rate is taken on the date of bill of entry, i.e. 1 UK Pound = ₹108) (25,000 x 108) 27,00,000 Add: Basic Custom Duty (Rate of duty is taken on bill of entry or entry inward whichever is later) @ 12% of ₹27,00,000 3,24,000 Add: Social welfare surcharge @ 10% on basic custom duty (10% of ₹3,24,000) 32,400 Total 30,56,400 Add: IGST @ 18% of ₹30,56,400 5,50,152 Total Amount Payable 36,06,552 Total Duty Payable (₹3,24,000 + ₹32,400 + ₹5,50,152) 9,06,552

Topics: Customs Act

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