Zuhi Ltd. has imported a machine to be used for providing a taxable service. The assessable value of imported machine as approved by customs is ₹5,00,000. Customs duty @ 10% is payable. Further, if the machine is manufac
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2016
Zuhi Ltd. has imported a machine to be used for providing a taxable service. The assessable value of imported machine as approved by customs is ₹5,00,000. Customs duty @ 10% is payable. Further, if the machine is manufactured in India, excise duty @ 12% is leviable on such machine. Education cess and secondary and higher education cess are applicable as per prevailing rates. Special CVD @ 4% is also payable on such machine. You are required to Calculate the total customs duty payable on such machinery.
Answer & Explanation:
Computation of Customs Duty Payable by Zuhi Ltd. Particulars Amount (In ₹) Duty (In ₹) Assessable Value 5,00,000 Basic Customs Duty @ 10% (a) 50,000 50,000 Sub Total 5,50,000 Add: CVD @ 12% of ₹5,50,000 (b) 66,000 66,000 Total 6,16,000 1,16,000 EC + SHEC @ 3% (c) 3,480 3,480 Total 619,480 1,19,480 Add: Special CVD @4% on 619,480 (d) (₹5,00,000 + ₹50,000 + ₹66,000 + ₹3,480) 24,779 24,779 Total 6,44,259 1,44,259
Topics: Indirect Tax
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