Custom Import Duty – looking at what duties and taxes

If you are in an import business, you might be aware about the fact that imported goods are libel to pay a Basic Customs Duty (BCD) and that’s on the asses sable value. Thus, the value thus finalized after adding the BCD, an additional duty or even Countervailing Duty (CVD), equal to the excise duty on the similar products is levied. Moreover, an extra CVD of 4% is charged to pay the sales tax in India. A CESS of 3% needs to pay on BCD & CVD. Moreover, similar duties such as anti dumping, safe guard duties are appropriate in particular cases. The duties usually are ad-valor em, but in many cases even specific duties are livable.

looking at what duties and taxes

Goods/Raw Materials
  •  Basically a BCD of 10% is charged together with a CVD of 12.50% and ACVD of 4%. This     actually works out to a total of 29.441%
  • The duties (BCD) on the agricultural products are 30%. However, in many cases they may be up-to 85%. Additionally, for alcohols and spirits duties upto Rs. 150 per liter need to pay up.
  • For minerals normal duty need to pay are 10%, 5%, 2%, NIL
  • The duty on the fabric fabrics is with ground value on per sq. m basis according the       sort of and weight of the fabric.
Capital Goods

Machinery, Capital Goods, equipment's generally covered under section 84 and 85 usually brings attention of duty of 7.5% + CVD and ACVD. This works out to a sum of 26.428%. Duties are lesser for PC & and computer parts and telecom linked products under IT agreement. The duties are additionally reduced by release notifications depend on the usage of goods for particular purposes and for particular industries. You can collect more information on Custom Import Duty online. You can also take expert advice as well.

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