Customs Duty – Meaning, Taxable Event, Various

Types of Customs duties.

Made By:-Dhrumil ShahTYBBA Div 1

Roll No. 38

Meaning• A tax levied on imports and exports by the

customs authorities of a country to raise state revenue, and/or to protect domestic industries from more efficient or predatory competitors from abroad.

• In simple words, Customs Duty is a tax imposed on imports and exports of goods.

Taxable EventGoods will be liable to be taxed if the same

enter India from any of the either mentioned routes:

• Road/Rail

•Air

•Sea

Types• Basic Customs Duty (BCD)

• Additional Duty of Customs/ Counter Veiling Duty (CVD)/ Section 3(1)

• Education and Secondary and Higher Education Cess

• Special Additional Duty (SAD) of Customs/ Special CVD/ Section 3(5)

• Safeguard Duty

• Anti-Dumping Duty

Basic Customs Duty (BCD)•Example:

Assessable Value 10,00,000Add: 10% of AV 1,00,000

11,00,000

Additional Duty of Customs/ Counter Veiling Duty (CVD)/ Section 3(1)•Example:

Assessable Value 10,00,000Add: 10% of AV 1,00,000

11,00,000Add: CVD 12.5% 1,37,500

12,37,500

Education and Secondary and Higher Education Cess•Example:

Assessable Value 1,00,000Add: 10% of AV 10,000

1,10,000Add: CVD 12% 13,200

1,23,200Add: Edu. Cess 3% 696

1,23,869

Special Additional Duty (SAD) of Customs/ Special CVD/ Section 3(5)•Example:

Assessable Value 1,00,000Add: 10% of AV 10,000

1,10,000Add: CVD 12% 13,200

1,23,200Add: Edu. Cess 3% 696

1,23,869Add: SAD 4% 4,956

1,28,852