ABC Ltd. imported a machine from UK in November, 2018. The details in this regard are as under: (i) FOB value of the machine 12,000 UK Pound (ii) Freight (Air): 4000 UK Pound (iii) Licence fee, the buyer was required to

Computation of assessable value and total customs duty and integrated tax payable Particular Amount (UK Pound) FOB Value 12,000 Add: License fee required to be paid in UK payable by the buyer as a condition of sale, are all includible in the assessable value - Rule 10(1)(c) 500 Customs FOB Value 12,500 Particular Amount (₹) Value in rupees (Exchange rate is ₹98 per UK Pound * 12,500) 12,25,000 Add: Air freight (restricted to 20% of ₹12,25,000) Note: In case of goods imported by air, freight cannot exceed 20% of Customs FOB value 2,45,000 Insurance @ 1.125% of 12,25,000 Insurance charges, when not ascertainable, have to be included @ 1.125% of FOB value of goods [Third proviso to Rule 10(2) of the Customs Valuation Rules]. 13,781.25 Buying commission is not includible in the assessable value NIL Designing charges paid for work done in India have not been included for the purpose of arriving at assessable value. Rule 10(1)(b)(iv) NIL No landing charges are to be added to the CIF value in view of the amendment in Rule 10(2) NIL CIF Value 14,83,781.25 Assessable Value 14,83,781.25 Add: Basic customs duty @ 10% (14,83,781*10%) [rounded off] (A) 1,48,378 Add: Social Welfare Surcharge (10% of ₹1,48,378) [rounded off] (B) 14,838 Value for integrated tax under Section 3(7) of the Customs Tariff Act, 1975 (AV + BCD + SWS) 16,46,997 Add: Integrated tax under Section 3(7) @ 12% [rounded off](C) 1,97,640 Total customs duty and integrated tax payable [(A)+(B)+(C)] 3,60,856