Tax Mohalla - Tax by KK

Baggage rules 2016 has been prescribed where rate of duty and valuation is done on the date of declaration under section 77 of the Customs Act, 1962. The HSN classification code of baggage is 9803 where rate of duty prescribed is 100%. However exemption notification has prescribed the rate of duty to be 35% for all baggage except annexure 1 goods. Few of the annexure 1 goods are fire arms, cartridge upto 50, cigars, cigrettes, tobacco, LED, LCD, plasma tv, gold or silver. There are general allowance of Rs. 50,000 or Rs. 15,000 as per Rule Rule 3 and Rule 4 of the baggage rules. Rule 5 prescribes clearance of jewellery for gentleman passenger 20 gm valued Rs. 50,000 and for lady passenger 40 gm valued Rs. 1,00,000.

Generally transaction value is assessable value. But as per Rule 3 of import valuation rules, proper office may not accept transaction value as assessable value if certain restrictions and conditions are put in disposal of imported goods. Also where buyer and seller are related then also transaction value may not be accepted. As per Rule 12 of import valuation rules proper officer may reject the transaction value. Where transaction value is rejected following rules shall be followed sequentially. Rule 4: Value of identical goods Rule 5: Value of similar goods Rule 7: Deducted Value Rule 8: Compute Value Rule 9: Residual method. Similarly there are export valuation rules.

Section 14 prescribes that transaction value shall be accepted as assessable value if goods are sold, price is the sole consideration and buyer and seller are not related. Rule 10 makes certain additions to FOB value i.e. in a contract price some which are cost of transport and cost of insurance. But if not ascertained then 20% of FOB and 1.1125% of FOB shall be added to arrive at CIF value. Royalties and licence fees as a condition for sale is also a part of import value.

#cafinal #csprofs #cmafinal Both Import duties and export duties are prescribed under customs tariff act, 1975. Infact following duties are also prescribed under customs tariff act a. IGST on import of goods. b. GST compensation cess on import of goods. c. Safeguard duty d. CVD on subsidised articles. e. Anti dumping duty. As per section 12 of the customs Act, 1962 duties of customs are levied also under finance act. Social welfare surcharge under finance act 2018 and health cess under finance act 2020.

These are high quality mcq made on customs act by CS K K Agrawal. If you really want to test your knowledge about duty drawback mcq then this mcq is for you. Duty drawback u/s 74 is allowed where the same goods are re-exported after imporation therefore. Duty drawback can be claimed upto 98% of import duty paid including GST. Duty drawback u/s 75 is allowed where imported inputs are used for manufacture of final products in India and is ultimately exported. Drawback u/s 75 is allowed on all industry rates basis.