Tag: Advanced Tax Laws Practice

Place of Supply – Advanced Tax Laws and Practice Important Questions

Question 1.
Sakshitha Dancers, owned by Mrs. Lasliya, a famous Bharata Natyam dancer, wishes to organise a ‘Lasliya Dance Concert’ in Chandigarh (Haryana). Sakshitha Dancers is registered in Jaipur, Rajasthan. It enters into a contract with an event management company, Hasan Arts (P.) Ltd. (registered in Delhi) for organising the said dance concert at an agreed consideration of ₹10,00,000.

Hasan Arts (P) Ltd. books the lawns of Hotel Sky Dine, Chandigarh (registered in Haryana) for holding the dance concert, for a lump sum consideration of ₹6,00,000. Sakshitha Dancers fixes the entry fee to the dance event at ₹6,000; 600 tickets for ‘Lasliya Dance Concert’ are sold. From the aforesaid details, identify the different supplies which are involved and determine the CGST & SGST or IGST liability, as the case may be, in respect of all the supplies involved in the outlined situation. Rate of GST may be taken as under:

SGST: 9%
CGST: 9%
IGST: 18%

Answer:
Identification of supplies involved and GST payable:

In the given problem, three supplies are involved:

(i) Services provided by Sakshitha Dancers to audiences by way of ad-mission to dance event.
(ii) Services provided by Hasan Arts (P.) Ltd. to Sakshitha Dancers by way of organising the dance event.
(iii) Services provided by Hotel Sky Dine to Hasan Arts (P.) Ltd. by way of accommodation in the hotel lawns for organising the dance concert. The CGST and SGST or IGST liability in respect of each of the above supplies is determined as under:

(i) Services provided by Sakshitha Dancers to audiences by way of admission to dance event

As per the provisions of section 12(6) of the IGST Act, 2017, the place of supply of services provided by way of admission to, inter alia, a cultural event shall be the place where the event is actually held. Therefore, the place of supply of services supplied by Sakshitha Dancers to audiences by way of admission to the music concert is the location of the Hotel Sky Dine, i.e. Chandigarh, Haryana.

Since the location of the supplier (Jaipur, Rajasthan) and the place of supply (Chandigarh, Haryana) are in different States, IGST will be leviable.

Therefore, IGST leviable will be computed as follows:

Consideration for supply 600 tickets @ ₹6,000 per ticket = ₹36,00,000 IGST @ 18% on value of supply = ₹36,00,000 × 18% = ₹6,48,000.

(ii) Services provided by Hasan Arts (P) Ltd. to Sakshitha Dancers by way of organising the dance event.

Section 12(7)(a)(i) of IGST Act, 2017 stipulates that the place of supply of services provided by way of organization of, inter alia, a cultural event to a registered person is the location of such person.

Therefore, the place of supply of services supplied by Hasan Arts (P.) Ltd. to Sakshitha Dancers (Jaipur, Rajasthan) by way of organising the music concert is the location of the recipient, ie. Jaipur (Rajasthan). Since the location of the supplier (Delhi) and the place of supply (Jai¬pur, Rajasthan) are in different States, IGST will be leviable.

Consideration for supply = ₹10,00,000.
IGST @ 18% on value of supply = ₹10,00,000 × 18% = ₹1,80,000

(iii) Services provided by Hotel Sky Dine to Hasan Arts (P.) Ltd. by way of accommodation in the Hotel lawns for organising the dance concert

As per the provisions of section 12(3)(c) of the IGST Act, 2017, the place of supply of services, by way of accommodation in any immovable property for organizing, inter alia, any cultural function shall be the place where such immovable property is located. Therefore, the place of supply of services supplied by Hotel Sky Dine (Chandigarh, Haryana) to Hasan Arts (R) Ltd. by way of accommodation is the place where immovable property ie. Hotel Sky Dine is located.

Since the location of the supplier (Chandigarh, Haryana) and the place of supply (Chandigarh, Haryana) are in the same State, CGST and SGST will be leviable.

Therefore, CGST and SGST leviable will be computed as follows: Consideration for supply = ₹6,00,000 CGST @ 9% on value of supply = ₹6,00,000 × 9% = ₹54,000 SGST @ 9% on value of supply = ₹6,00,000 × 9% = ₹54,000

Author’s note:
Only this one-time ICSI asked a single question of having weightage of 15 marks. Otherwise, maximum marks allotted to each question is 5.

Question 2.
Mrs. Bharghavi is a registered supplier under GST law in Coimbatore, Tamil Nadu, running a factory for manufacture of electric motors. For giving training to her employees, she has utilized the services of Vibrant Trainers Pvt. Ltd., a registered supplier in Trissur, Kerala. The training programs are to be held at Trissur.
(i) What will be the place of supply of services provided by Vibrant Trainers Pvt. Ltd. to Mrs. Bharghavi?
(ii) Will your answer be different, if Mrs. Bharghavi is not a registered supplier?
(iii) In the situation given in the problem, if the training is to be provided at Singapore, what will be the place of supply?
Answer:
(i) As per section 12(5) of IGST Act, 2017, when service in relation to training is provided to a registered person, place of supply is the location of recipient. Therefore, if Mrs. Bharghavi is a registered person, the place of supply will be the location of recipient, i.e., Coimbatore, Tamil Nadu.

(ii) As per section 12(5) of IGST Act, 2017, when service in relation to training is provided to an unregistered person, the place of supply is the location where the services are actually performed. Therefore, in this case, place of supply will be Trissur, Kerala.

(iii) When the training takes place outside India (Singapore), the place of supply will be the location of recipient i.e. Coimbatore, Tamil Nadu as Mrs. Bharghavi ie. recipient of supply is registered under GST.

Question 3.
Determine the place of supply according to the provisions of Integrated Goods and Services Tax Act, 2017 in the following cases:

(i) K of Kerala places an order to H of Gurgaon (Haryana) to supply motor parts and instructs him to deliver the spare parts to U of Kanpur (U.P.) directly to save transportation cost.

(ii) P Ltd. registered in Punjab sold its pre-installed transformer tower of electricity located at Himachal Pradesh to Bharat Ltd. registered in Delhi.

(iii) M from Mumbai enters into contract with the Indian Railways controlling office situated in U.P. for sale of food items in the trains from Mumbai to Delhi.

(iv) D of Delhi has a savings bank account with HDFC Bank in Delhi. When he was in Mumbai for official tour, he gets a DD (Demand Draft) from HDFC Bank in Mumbai.

(v) K of Kerala avails architect services for his property located in Chennai (Tamil Nadu) from an architect H of Hyderabad in Telangana State.
Answer:
(i) Goods are delivered to U (Kanpur, U.P.) the recipient of goods on the direction of K of Kerala. As per section 10(1)(b) of IGST Act, 2017, where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person, therefore in the given case, place of supply shall be the location of principal place of K ie. Kerala.

(ii) As per section 10(1)(c) of IGST Act, 2017, where supply does not involve movement of goods, place of supply shall be the location of goods at the time of delivery to the recipient. In the given case, the location of pre-installed tower is in Himachal Pradesh, therefore, place of supply is 3 Himachal Pradesh.

(iii) As per section 10(1)(e) of IGST Act, 2017, where the goods are supplied 5 on board a conveyance, the place of supply shall be the location at which such goods are taken on board. In the given case, M from Mumbai supplying food items in the train from Mumbai to Delhi, assuming that food items are taken on board at Mumbai, therefore, place of supply shall be Mumbai.

(iv) As per section 12(12) of IGST Act, 2017, place of supply of banking services shall be location of recipient of services on the records of supplier of services. However, if location of recipient of service is not on the records of supplier, the place of supply shall be location of supplier of services. In given case, assuming that D has Bank Account with HDFC Bank and on records of HDFC Bank, address of D is of Delhi, place of supply shall be Delhi.

(v) As per section 12(3) of IGST Act, 2017, place of supply of services of architects in relation to immovable property, shall be the location where immovable property is located. Therefore, in the given case place of supply shall be Chennai (Tamil Nadu).

Question 4.
Mr. Yogesh is working in Infosys Company having office in Bengaluru. Infosys Company is registered under GST. Mr. Yogesh purchased the ticket from Hyderabad for transportation as passenger by Air from Hyderabad to Chennai. Mr. Yogesh discloses the name of the organization and its registration number and the place where the organization is registered. Supplier of service is located at Hyderabad.

Find the following:
(i) Place of supply of service and GST liability.
(ii) Whether your answer is different if Mr. Yogesh has not disclosed the name of the organization and its registration number?
Answer:
(i) Place of Supply shall be Bengaluru (i.e. location of recipient of service) in terms of section 12(9) of IGST Act, 2017 as the passenger transportation service is supplied to a registered person. Further, IGST is liable to be paid by Air Travel Operator as location of supplier (Hyderabad, Telangana) and place of supply (Bengaluru, Karnataka) is in different states.

(ii) Place of Supply shall be Hyderabad (i.e. Place where the passenger embarks on the continuous journey) in terms of section 12(9) of IGST Act, 2017 as the supply of passenger transportation service is to a person other than registered person.

Further, CGST & SGST is liable to be paid by Air Travel Operator as location of supplier and place of supply is in same state i.e. Telangana.

Question 5.
Mr. Mahendra Goyal, an interior decorator provides professional services to Mr. Harish Jain in relation to two of his immovable properties. Determine the place of supply in the transactions below as per provisions of GST law in the following independent situations:

CASE	LOCATION OF MR.MAHENDRA COYAL	LOCATION OF MR.HARISH JAIN	PROPERTIES SITUATED AT
I	Delhi	Mumbai	New York (USA)
II	Delhi	New York	Paris (France)

Answer:
Case I:
As per section 12(3) of IGST Act, 2017, where both the service provider and service recipient are located in India, the place of supply of services directly in relation to an immovable property, including services provided by interior decorators is the location of immovable property.

However, if the immovable property is located outside India, the place of supply is the location of recipient. Since in the given case, both the service provider (Mr. Mahindra Goyal) and the service recipient (Mr. Harish Jain) are located in India and the immovable property is located outside India (New York), the place of supply will be location of recipient le. Mumbai.

Case II:
As per section 13(4) of IGST Act, 2017, where either the service provider or recipient of service is located outside India, the place of supply of services directly in relation to an immovable property including services of interior decorators is the location of immovable property.

Since, in given case, service recipient (Mr. Harish Jain) is located outside India (New York), the place of supply will be location of immovable property ie. Paris (France).

Place Of Supply Notes

• “Location of supplier” and “PLACE OF SUPPLY” determine the nature of the transaction i.e. whether the supply is “Intrastate” or “Inter-state” 1 and accordingly whether “CGST + SGST/UTGST” or “IGST” is 5 chargeable.
• Sections 10, 11, 12 & 13 of the IGST Act determine the Place of Supply. Section 10: Place of supply of goods other than supply of goods imported into, or exported from India.

Case	Place of supply
(1)(a) Supply involves the movement of goods.	Location of goods at the time at which movement of goods terminates for delivery to the recipient.
(1)(b) Goods are delivered by the supplier to a recipient on the direction of a third person.	Principal place of business of such third person.
(1 )(c) Supply does not involve the movement of goods.	Location of such goods at the time of delivery to the recipient.
(1 )(d) Goods are assembled or installed at site.	Place of such installation or assembly.
(1)(e) Goods are supplied on board a conveyance.	Location at which such goods are taken on board.
(2) Supply of goods cannot be determined.	Determined in such manner as may be prescribed.

Section 11: Place of supply of goods imported into, or exported from India.

Case	Place of supply
(a) Goods imported into India	Location of the importer.
(b) Goods exported from India	Location outside India

Section 12: Place of supply of services where the location of supplier and recipient is in India.

Case	Place of supply
(2) Other than cases specified in (3) to (14) – GENERAL CLAUSE	(a) Supply is to a REGISTERED person – Location of such person
	(b) When supply is to any person other than a registered person – (i) Address on record exists: Location of recipient. (ii) In other cases: Location of supplier of services.
(3) Services in relation to immovable property, lodging accommodation services.	Location at which the immovable property is located or intended to be located. However, if the location of immovable property is outside India:- Location of the recipient. Explanation: If immovable property is in more than one state or Union Territory:- Each such state or union territories in specific proportion.
(4) Restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery.	The location where the services are actually performed.
(5) Training and performance appraisal services	(a) To a registered person: Location of such person (b) To an Unregistered Person: Location where services are actually performed
(6) Services by way of admission to events or amusement park or any other place and services ancillary thereto	Place where the event is actually held or where the park or such other place is located.
(7) Services by way of organization of events or services ancillary to organization of events or assigning of sponsorship to such events	(i) To registered person: Location of such person. (ii) To an unregistered Person: Place where the event is actually held. But if the event is held outside India: Location of the recipient. Explanation: If the event is held in more than one state/UT: Each of such state/ UT in specific proportion.
(8) Services by way of transportation of goods, including by mail or courier	(a) To a Registered Person: Location of such person. (b) To an unregistered Person: Location where such goods are handed over for their transportation. Proviso: Where transportation is to a place outside India: Place of destination of such goods.
(9) Passenger Transportation services	To a Registered person: location of such person. To an unregistered person: Place where the passenger embarks on the conveyance for continuous journey*. ’Continuous journey: Return journey shall be treated as a separate journey. Proviso: Right to passage is given for future use and point of embarkation is not known: As per section 12(2) of the IGST Act.
(10) Services on board a conveyance	Location of first scheduled point of departure of that conveyance for the journey.
(11) Telecommunication services including data transfer, broadcasting cable & DTH services.	(a)          Services by Fixed Telecommunication line: Location where such telecommunication line is installed for receipt of services. (b)          Mobile connection on post- paid basis: Location of billing address of the Recipient of services on records of supplier of services. (c)           Mobile connection on pre-paid basis through voucher or any other means: (i) Through a selling agent, etc.: Address of selling agent, etc. as per records of supplier. (ii) By any other person to final subscriber: Location where such pre-payment is received or such vouchers are sold. (d) In other cases: Address of recipient as per records of supplier of services and where such address is not available, then location of supplier of services. Proviso: Pre-paid service is availed/Re-charge is done through internet banking or other electronic mode: Location of recipient of services on record of supplier of services. Explanation: Leased circuit line is installed in more than one state/UT: It shall be each state/UT in which it is installed in specific proportion.
(12) Banking and other financial services	To any person: Location of recipient of services on the records of supplier of services. Proviso: If location of recipient of services is not on records of supplier: Location of supplier of services.
(13) Insurance Services	(a) To a Registered Person: Location of such person. (b) To an unregistered person: Location of recipient of services on the records of supplier of services.
(14) Advertising Services to Central Government, State Government, a statutory body or a local authority	Each of such state/UT in specific proportion of the amount attributable to services by way of dissemination in respective states/UT.

Section 13 of IGST Act: Place of supply of service where the location of supplier or recipient of the supply is outside India

Case	Place of supply
(2) General provisions: For services not covered in sub-sections (3) to (13)	Location of recipient of services
If in above case, location of Recipient of services is not available in ordinary course of business	Location of supplier of services
(3) Performance based services: (a)          Services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services in order to provide the services.   When such services are provided from a remote location by way of electronic means   Services supplied in respect of goods which are temporarily imported into India for repairs or for any other treatment or process and are exported after such repairs or treatment or process without being put to any use in India, other than that which is required for such repairs or treatment or process   (b) Services supplied to an individual, represented either as the recipient of services or a person acting on behalf of recipient, which require the physical presence of the recipient or the person acting on his behalf, with the supplier for supply of services.	Location where services are actually performed               Location where goods are situated at the time of supply of services.   Provisions of section 13(3) will not apply and place of supply shall be determined as per section 13(2).           Location where services are actually performed.
(4) Services relating to immovable property	Place where immovable property is located or intended to be located.
(5) Services relating to events	Place where the event is actually held.
(6) Services mentioned in (3), (4) and (5) provided at more than one location including a location in taxable territory.	Location in Taxable territory
(7) Services referred in (3), (4) or (5) are supplied in more than one state or Union Territory.	Each of the respective states or Union Territories and value of such supplies shall be in proportion to value for services separately collected or determined in terms of the contract or in absence of such contract, on such other basis as may be prescribed.
(8) Specified Services: (a) Services supplied by a banking company or financial institution or a non-banking financial company to account holders (b) Intermediary Services (c) Services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, up to a period of one month	Location of supplier of services     Location of supplier of services Location of supplier of services
(9) Services of transportation of goods, other than by way of mail or courier	Place of destination of such goods
(10) Passenger Transportation services	Place where the passenger embarks on the conveyance for continuous journey.
(11) Services provided on board a conveyance	First scheduled point of departure of that conveyance for the journey
(12) Online Information and Database access or Retrieval services (OIDAR)	Location of recipient of services*

* Person receiving OIDAR services shall be deemed to be located in the taxable territory if any two of the following non-contradictory conditions are satisfied –

a. location of address is in the taxable territory
b. Credit Card/Debit Card etc. by which the recipient of services settles payment has been issued in the taxable territory.
c. Billing address of the Recipient of services is in the taxable territory.
d. IP Address of device used by Recipient of services is in the taxable territory.
e. Bank of Recipient of services in which account used for payment is maintained is in the taxable territory.
f. Country code of SIM card used by the recipient of services is of taxable territory.
g. Location of the fixed land line through which service is received by the recipient is in the taxable territory.
Section 13(13): To prevent double taxation or non-taxation of supply of a service, or for uniform application of rules – Government has the power to notify any description of services or circumstances in which place of supply shall be a place of effective use and enjoyment of a service.

CS Professional Advance Tax Law Notes

Miscellaneous – Advanced Tax Laws and Practice Important Questions

Question 1.
Write short notes on the following:
(i) Common Portal
(ii) Deemed Export
(iii) Taking Assistance from an Expert
Answer:
(i) Common Portal:
The Government may, on the recommendations of the Council, notify the common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns, computation and settlement of integrated tax, e-way bill and for carrying out such other functions and for such purposes as may prescribed. Common portal is www.gst.gov.in.

(ii) Deemed Exports:
The Government may, on the recommendations of the to Council, notify certain supplies of goods as deemed exports, where goods do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.

(iii) Taking Assistance from an Expert:
Any officer not below the rank of Assistant commissioner may, having regard to the nature and complexity of the case and the Interest of revenue, take assistance of any expert at any stage of scrutiny, inquiry, investigation or any other proceedings before him.

Question 2.
What is National Anti-Profiteering Authority (NAA)?
Answer:
The National Anti-Profiteering Authority (NAA) was established under section 171 of the Central Goods and Services Tax Act, 2017. The NAA was set up to monitor and to oversee whether the reduction or benefit of input tax credit is reaching the recipient by way of appropriate reduction in prices.

National Anti-profiteering Authority (NAA) is therefore primarily constituted by the central government to analyse whether input tax credits availed by any registered person or the reduction in the tax is passed onto the consumer and he/she is protected from random price increase for self-interests in the name of GST.

The primary aim of the National Anti-profiteering Authority is to ensure the benefits of reduction or lower taxes under the new GST regime are passed onto the end consumers. Which is to determine that if any reduction in the rate of tax on supply of goods or services is passed onto the final recipient by way of proportional reduction in prices?

Apart from this, the NAA also has to identify registered people/entities who have not passed on the benefit of a reduction in the rate of tax by means of ITC and bring them to task.

Question 3.
State the duties and powers of the Anti-profiteering Committee under GST law.
Answer:
Duties of Anti-profiteering committee – Section 171(3)

The Authority would have the following duties:

(i) To determine whether any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices.

(ii) To identify the registered person who has not passed on the benefit of reduction in the rate of tax on supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices;

(iii) to order, reduction in prices; return to the receipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen per cent, form the date of collection of the higher amount till the date of the return of such amount or recovery of the amount not returned, as the case may be, in case the eligible person does not claim return of the amount or is not identifiable, and depositing the same in the Consumer Welfare Fund;

imposition of penalty; and
Cancellation of registration.

Question 4.
What is the purpose of Compliance rating mechanism?
Answer:
As per Section 149 of the CGST/SGST Act, every registered person shall be assigned a compliance rating based on the record of compliance in respect of specified parameters. Such ratings shall also be placed in the public domain. A prospective client will be able to see the compliance ratings of suppliers and take a decision as to whether to deal with a particular supplier or not. This will create healthy competition amongst taxable persons.

Question 5.
What are the objectives of Compliance Rating?
Answer:
The following are the major benefits/objectives of compliance rating: Efficient input tax credit mechanism:

A person can claim an input tax credit in GSTR-2 (return with purchase details for the month) only when the seller also files his GSTR-1 (return with monthly sales details), and the details on both these forms reconcile or match with each other. This was not so earlier. The rating of a taxable person would be relevant to determine the eligibility of input tax credit in respect of inward supplies, selection for scrutiny and other administrative/monitoring purposes.

The rating would be based on tax payer’s record of compliance with the provisions of CGST, SGST and IGST. The details of parameters and methodology for rating would be prescribed.

Preferred supplier chosen by buyers/increase customer base:

As compliance rating increases, so is customer base, in accordance with rating and reputation. The buyer will prefer to choose those suppliers whose rating is good in the market. Will ensure healthy competition and enhanced compliances: The objective of this concept of tax administration is to make people fully GST compliant and on time with the uploading of invoices and other necessary documents, which will ensure healthy competition in the market.

Lower or poor rating may attract stricter scrutiny and surveillance:

If rules and regulations are regularly followed, then the chances of business coming under the spotlight or scrutiny of the GST authorities are significantly reduced, as the need to audit accounts will be nil.

Question 6.
Narrate all those advantages which will be available to Trade because of implementation of GST.
Answer:
The advantages because of applicability of GST to trade are:-

1. Reduction in multiplicity of taxes
2. Mitigation of cascading/double taxation
3. More efficient neutralization of taxes especially for exports
4. Simpler tax regime with fewer rates and exemptions
5. Increase in cost competitiveness for domestic industries with reduction in tax cost and also reduced cost of compliance.

Question 7.
Briefly explain the following features of GST law in India:
(i) Consumption based tax
(ii) Integrated Goods and Services Tax.
Answer:
(i) GST is a consumption based tax i.e. tax payment accure to the state where consumption of supply takes place. Exports are not taxable because place of consumption is outside India whereas imports are taxable as place of consumption is in India.

(ii) Integrated Goods and Services Tax (IGST) is charged on inter-State supply of goods or services or both and collected by Central Government under IGST Act, 2017.

IGST rate is equal to CGST and SGST rates. Revenue from IGST apportions among Union and State Governments on the basis of recommendations of GST council.

Question 8.
Answer the following independent issues in the context of provisions contained under the GST Act, 2017?
(i) The different applicable rates of GST which also apply to IGST.
(ii) GST Council.
(iii) Point of Taxation.
(iv) SGST cannot be levied in a Union Territory and to plug this loophole, the GST Council had decided to have which legislature.
(v) Name the Act and the period which provides compensation to the States for the loss of revenue because of implementation of GST.
Answer:
(i) The rates of GST (CGST + SGST/UTGST) applicable for goods are Nil, 5%, 12%, 18%, and 28%. Some goods are also liable to tax at 0.2596 and 396.

(ii) GST Council means the council established under article 279A of the Constitution of India having Union Finance Minister as Chairperson, Union Minister of State in charge for Finance and State Finance Minister of every State as its member.

(iii) Point of Taxation is not used under GST. The termed used is ‘Time of Supply’. The expression ‘time of supply’ is not defined. The liability to pay GST arises at the ‘time of supply’ determined in accordance with GST Acts.

(iv) The Union Territory Goods and Service Tax Act, 2017 provides for levy of GST in Union Territories instead of State Goods and Services Tax (SGST).

(v) The Goods and Service Tax (Compensation to States) Act, 2017 for a period of 5 years.

Question 9.
State the functions of the GSTN, i.e. the role assigned to GSTN.
Answer:
Functions of the GSTN (i.e. Role assigned to GSTN):
Creation of common and shared IT infrastructure for functions facing taxpayers has been assigned to GSTN and these are:

• filing of registration application.
• filing of return.
• creation of challan for tax payment.
• settlement of IGST payment (like a clearing house).
• generation of business intelligence and analytics, etc.

All statutory functions to be performed by tax officials under the GST like approval of registration, assessment, audit, appeal, enforcement etc. will remain with the respective tax departments.

Question 10.
How to calculate Goods and Services Tax (GST)?
Answer:
GST can be calculated simply by multiplying the Taxable amount by GST rate.

The different applicable rates of GST which also apply to IGST.

(ii) GST Council.
(ill) Point of Taxation.

If CGST & SGST/UTGST is to be applied then CGST and SGST both amounts are half of the total GST amount.
Goods and Services Tax = Taxable Amount × GST Rate.
If you have the amount which is already including the GST then you can calculate the GST excluding amount by below formula:
GST excluding amount = GST including amount/(1+ GST rate/100)
For example, GST including amount is ₹525 and GST rate is 5%.
GST excluding amount = 525/(1+5/100) = 525/1.05 = 500
GST is calculated on the transaction amount and not on the MRR

Question 11.
GST law in India came into existence with effect from 1-7-2017. What are the various central taxes which are subsumed under the GST law?
Answer:
The following are the various Central Taxes subsumed under the GST Law:
Central Excise Duty
Service Tax
Additional Excise Duties
CVD (levied on imports in lieu of Excise duty)
SAD (levied on imports in lieu of VAT)
Excise Duty levied under Medicinal and Toiletries Preparations Act,
Surcharges and Cesses

Question 12.
What is GST regime? Mention the State taxes and levies that are subsumed under GST.
Answer:
The GST is a comprehensive destination-based tax levy on manufacture, sale and consumption of goods and services at a national level which will subsume most of the indirect taxes at State and Central level to provide comprehensive and continuous chain of set-off benefits throughout the value chain.

Following state taxes and levies are subsumed under GST:

(a) Octroi
(b) VAT (except on liquor for consumption)
(c) Entry tax
(d) Stamp duty
(e) Tax on consumption or sale of electricity
(f) Entertainment tax (unless it is levied by the local bodies)
(g) Luxury tax
(h) Taxes on lottery, betting and gambling
(i) State Cess and Surcharge in so far as they relate to supply of goods and services
(j) Purchase Tax

Question 13.
Which was the first country to introduce Goods and Services Tax (GST) and When? What are the functions of the GST Council in India?
Answer:
France was the pioneer who first introduced GST in the Year 1954.

Functions of the GST Council

To recommend rate of taxes, cesses and surcharges to be levied by the Centre, States and local bodies.
To list goods and services which may be subjected to or exempted from GST.
To design model of GST laws and principles.
To fix the threshold limit of turnover below which exemption may be given.
To recommend the floor rates and special rates.
To suggest special provisions for North East States and other hilly areas.

Question 14.
What is cascading effect of Tax?
Answer:
The cascading effect implies charging tax on tax. In other words, at the time of levy of tax, the total value is considered which is inclusive of all taxes paid up to that point.

In this manner, if the tax is always charged on the selling price of the product, the burden of tax keeps on increasing at each point of sales. In this process, the effect of taxation magnifies as at each level tax is calculated on value, which includes taxes already levied and paid. The charging of tax on tax is called as ‘Cascading Effect of tax’.

Question 15.
What are the advantages of IGST Model?
Answer:
The major advantages of IGST Model are:

(a) Maintenance of uninterrupted ITC chain on inter-State transactions;
(b) No upfront payment of tax or substantial blockage of funds for the inter-State seller or buyer;
(c) No refund claim in exporting State, as ITC is used up while paying the tax;
(d) Self-monitoring model;
(e) Ensures tax neutrality while keeping the tax regime simple;
(f) Simple accounting with no additional compliance burden on the tax-payer;
(g) Would facilitate in ensuring high level of compliance and thus higher collection efficiency. Model can handle ‘Business to Business’ as well as ‘Business to Consumer’ transactions.

Question 16.
What are the recognitions to a Company Secretary under GST?
Answer:
Company Secretary to act as Goods & Services Tax Practitioner (GSTP)

Section 48(1) of the Central Goods & Services Act, 2017 (CGST) provides for “the manner of approval of goods and services tax practitioners, their eligibility conditions, duties and obligations, manner of removal and other conditions relevant for their functioning shall be such as may be prescribed.”

Pursuant to section 48 of CGST Act, 2017, read with Rule 83 of the Central Goods and Services Tax Rules, 2017, any person who has passed the Final Examination of the Institute of Company Secretaries of India (ICSI) is eligible for enrolment as a Goods & Services Tax Practitioner by making an application in Form GST PCT-01 on the common portal either directly or through a Facilitation Centre notified by the Commissioner for enrolment. A Goods & Services Tax Practitioner is eligible to undertake the following tasks:

(a) furnish details of outward and inward supplies;
(b) furnish monthly, quarterly, annual or final return;
(c) make deposit for credit into the electronic cash ledger;
(d) file a claim for refund;
(e) file an application for amendment or cancellation of registration;
(f) furnish information for generation of e-way bill;
(g) furnish details of Challan in FORM GST ITC-04;
(h) file an application for amendment or cancellation of enrolment under rule 58; and
(i) file an intimation to pay tax under the composition scheme or with¬draw from the said scheme.

Company Secretary to represent before the Appellate Authority

Under Section 116 of Central Goods & Services Tax Act, 2017, read with Rule 84 of Central Goods & Services Tax Rules, 2017, a Company Secretary is entitled to appear before an officer appointed under this Act, or the Appellate Authority or the Appellate Tribunal in connection with any proceedings under this Act.

Miscellaneous Notes

Sections involved: 143 to 174 of CGST Act

• Job Work procedure (Section 143)
• Presumption as to documents in certain cases.
• Admissibility of micro films, facsimile copies of documents, and computer printout as documents and as evidence.
• Common portal (Section 146)
• Deemed Exports (Section 147)
• Special provisions for certain processes
• Goods and Services Tax compliance rating (Section 149)
• Obligation to furnish information return (Section 150)
• Power to collect statistics
• Bar on disclosure of information
• Taking assistance from an expert (Section 153)
• Power to take samples
• Burden of Proof
• Persons deemed to be public servants
• Protection of action taken under this Act
• Disclosure of information by a public servant
• Publication of information in respect of persons in certain cases
• Assessment proceedings, etc., not to be valid on certain grounds
• Rectification of errors apparent on the face of the record
• Bar on the jurisdiction of Civil courts
• Levy of fee
• Power of Government to make rules
• Power to make regulations
• Laying of rules, regulations, and notifications
• Delegation of powers
• Power to issue instructions or directions
• Service of notice in certain circumstances
• Rounding off of tax, etc.: To nearest of rupee (Section 170)
• Anti-profiteering measure (Section 171)
• Removal of difficulties
• Repeal and saving

Author’s Note:
In this topic, apart from questions relating to provisions of Chapter XXI of CGST Act which deals with “Miscellaneous”, we have also listed various questions which could not be specifically incorporated in any other topic.

CS Professional Advance Tax Law Notes

Valuation Of Imports And Exports – Advanced Tax Laws and Practice Important Questions

Question 1.
Calculate FOB Value, Cost of Insurance, Cost of Freight, and Assessable Value where only the CIF value Is given as the US $ 5,000. Exchange rates notified by RBI and CBEC are ₹ 50 and ₹ 48 respectively for one US $.
Answer:
As per rule 10(2) proviso 3 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 where FOB value of goods, cost of insurance, and freight are not ascertainable, then cost of insurance and cost of freight shall be computed as follows:
CIF value – US$ 5,000 × ₹ 48 = ₹ 2,40,000
Freight & Insurance – ₹ 2,40,000 × 21.125/121.125 = ₹ 41,858
FOB Value – ₹ 2,40,000 – ₹ 41,858 = ₹ 1,98,142

The exchange rate notified by CBECICBIC has to be taken i.e. ₹ 48,1US$. As per Rule 10 of Valuation Rules, freight, and insurance when not availab1e has to be taken as 20% and 1.125% of FOB value respectively

Question 2.
Compute the assessable value and total customs duty payable under the Customs Act, 1962 for an Imported machine, based on the following information:

Particulars	Amount (US$)
Cost of the machine at the factory of the exporter	20,000
Transport charges from the factory of the exporter to the port of shipment	800
Handling charges paid for loading the machine in the ship	50
Buying commission paid by the importer	100
Lighterage charges paid by the importer	200
Freight incurred from the port of entry to the inland container depot	1,000
Ship demurrage charges	400
Freight charges from exporting country to India	5,000
Date of Bill of Entry: 20.02.2020
(Rate of BCD: 20%; Exchange rate as notified by CBIC: ₹ 60 per US$)
Date of Entry Inward: 25.01.2020
(Rate of BCD: 12%; Exchange rate as notified by CBIC: ₹ 65 per US$)
Rate of IGST: 12%

Answer:
Computation of Assessable Value and total customs duty payable:

Particulars	Amount US$
Cost of the machine	20,000
Add: Transport charges from factory of exporter to the port of shipment	800
Add: Handling charges	50
FOB Value	20,850
Add: Insurance (20,850 x 1.125%)	234.56
Add: Freight	5,000
Add: Lighterage Charges	200
Add: Ship Demurrage charges	400
CIF Value/Assessable Value	26,684.5625
	Amount (₹)
Assessable Value (US$26,684.5625 x ₹ 60)	16,01,074
Add: Basic Customs Duty @ 20% (₹ 16,01,074 x 20%)	3,20,215
Add: Social Welfare Surcharge @10% of Basic Customs Duty	32,022
Value for the purpose of levy of IGST	19,53,311
Add: IGST @ 12% (₹ 19,53,311 x 12%)	2,34,397
Total Cost of Imported goods	21,87,708
Customs Duty payable (₹ 3,20,215 + 32,022 + 2,34,397)	5,86,634

Question 3.
ABC Ltd. imported a machine from the UK in November 2020. The details in this regard are as under :

1. FOB value of the machine: 12,000 UK Pound
2. Freight (Air): 4000 UK Pound
3. Licence fee, the buyer was required to pay in the UK: 500 UK Pound
4. Buying commission paid in India ₹ 20,000
5. Designing charges paid to a consultancy firm in New Delhi, which was necessary for such machine ₹ 1,00,000 (vz) Actual landing charges paid at the place of importation ₹ 25,000.
6. Insurance premium details were not available.
7. For this purpose you may consider the following:

• Rate of exchange ₹ 98.00 per one pound.
• Rate of Basic Customs Duty (BCD) at 10%
• Integrated tax under section 3(7) of Customs Tariff Act at 12%
• Social Welfare surcharge as applicable
• Ignore GST Compensation Cess.

You are required to compute the total customs duty and integrated tax payable on the imported machine. You may make suitable assumptions wherever found necessary.
Answer:
Computation of Assessable Value and total Customs Duty and Integrated Tax payable

Particulars	Amount UK Pound
FOB Value	12,000
Add: License fee required to be paid in the UK payable by the buyer as a condition of sale, are all includible in the assessable value – Rule 10(l)(c)	500
FOB Value for the purposes of Customs	12,500
Add: Air Freight (Restricted to 20% of UK Pounds 12,500)	2,500
Insurance: 1.125% of UK Pounds 12,500	140.625
CIF Value	15,140.625
	Amount (₹)
Therefore, CIF Value/Assessable Value, converted in ₹ (UK Pound 15,140.625 x ₹ 98 per UK Pound)	14,83,781
Add: Basic Customs Duty @ 10% (₹ 14,83,781 x 10%) (A)	1,48,379
Add: Social Welfare Surcharge @ 10% of Basic Customs Duty (B)	14,838
Value for the levy of IGST	16,46,998
Add: Integrated Tax under section 3(7) of Customs Tariff Act @ 12% (C)	1,97,640
Total Cost of Imported Goods	18,44,638
Total Customs Duty and integrated tax payable (A + B + C)	3,60,857

Notes:
1. In the case of goods imported by Air, where actual air freight is not known, it is restricted to 20% of the FOB value of goods. (Rule 10(2) of Customs Valuation Rules)
2. Insurance charges that were not ascertainable have to be included @ 1.125% of FOB Value of Goods. (Rule 10(2) of Customs Valuation Rules)
3. Buying commission is not included in the assessable value.
4. Designing charges paid for work done in India have not been included for the purpose of arriving at the assessable value. (Rule 10(1) of Customs Valuation Rules)
5. No landing charges are to be added to the CIF Value.
4. Compute the assessable value of an imported product as of 11.12.2020 in the following independent situations:

Case 1:

Particulars	Figures in Euros
FOB Value	2,000
Freight, loading, unloading, and handling charges associated with the delivery of the imported goods to the place of importation	Not Known
Insurance charges	20

Case 2:

Particulars	Figures in Euros
FOB Value	2,000
Sea Freight, loading, unloading, and handling charges associated with the delivery of the imported goods to the place of importation	100
Insurance charges	Not Known

Answer:
Computation of Assessable Value

CASE 1:

Particulars	Euro
FOB Value	2,000
Add: Cost of Transportation (Since not known, taken at 20% of FOB value)	400
Add: Cost of insurance (Actual)	20
CIF Value i.e. Assessable Value	2,420

CASE 2:

Particulars	Euro
FOB Value	2,000
Add: Cost of Transportation (Actual)	100
Add: Cost of insurance (Not ascertainable, hence taken as 1.125% of FOB value)	22.50
CIF Value i.e. Assessable Value	2,122.50

Question 4.
Particulars relating to the import of product Z by Mr. Prahalad on 23-12-20 from Antwerp, Belgium to the Chennai airport, are given hereunder:

• FOB value of the Product $10,000
• Cost of transport, loading, unloading, and handling $ 2,500 charges associated with the delivery of the imported goods to the place of importation
• Insurance $ 1,000
• Unloading charges at Chennai airport ₹ 34,000
• Exchange rate notified by CBEC on 23-12-20 1$ = ₹ 64
• Exchange rate notified by RBI on 23-12-20 1 $ = ₹ 64.50
• Basic customs duty 10%

Ascertain the assessable value and the amount of duty payable by Mr. Prahalad.
Answer:
Computation of Assessable Value and total tax and duty payable by Mr. Prahalad in respect of import of product Z

Particulars	Amount(₹)
FOB Value of the product	$10,000
Add Adjustments as per Rule 10(2) of Customs Valuation Rules:
Cost of Transportation, loading, unloading, and handling charges associated with the delivery of the imported goods to the place of importation, restricted to 20% of FOB value (US$ 10,000 × 20%)	$2,000
Insurance (Actual)	$1,000
CIF Value Le. Assessable Value	$13,000
The exchange Rate notified by CBIC, US$ 1 = ₹ 64 is to be considered for arriving at the assessable value of the imported product ($13,000 × ₹ 64)	8,32,000
Add: Basic Customs Duty @ 10% (A)	83,200
Add: Social Welfare Surcharge @ 10% of Basic Customs Duty (B)	8,320
Therefore, Assessable Value for levy of IGST	9,23,520
Add: IGST @ 12% (Assumed GST at 12% on the goods) (C)	1,10,822
Total Cost of imported goods	10,34,342
Therefore, Total Customs Duty Payable (A+B+C) or; (Total Cost of imported Goods less Assessable Value)	2,02,342

Unloading charges at Chennai Airport are not to be added. It is to be noted that landing charges are not to be added to the CIF value in view of amendment in Rule 10(2) of the Customs Valuation Rules vide Notification No. 91/2017 – Cus. (NT) dated 26.09.2017.

Question 5.
Chandu Industries Ltd. imported some goods from the USA. The details of the transactions are as under:

CIF Value of goods:	US$ 1,44,000
Rate of basic duty:	20%
SWS	10%

If similar goods were supplied in India, IGST payable as per tariff plan would be 12%. You are required to calculate the assessable value and total duty payable thereon as per provisions of customs law.
Note: Rate of Exchange is as follows:
As per CBIC: 1 US$ = ₹ 63
As per RBI: 1 US$ = ₹ 60
Answer:
Computation of Assessable Value and customs duty payable for goods imported by Chandu Industries from the USA

Particulars	Amount(₹)
GIF Value (US$) i.e. Assessable Value	1,44,000
Assessable Value (Converted in ₹ by applying the rate of exchange notified by CBIC as on date of presentation of Bill of Entry. US$ 1,44,000 × ₹ 63)	90,72,000
Add: Basic Customs Duty at 10%	9,07,200
Add: Social Welfare Surcharge (S WS) @ 1096 of Basic Customs Duty	90,720
Assessable Value for the levy of IGST	1,00,69,920
Add: IGST u/s 3(7) @ 12%	12,08,390
Total cost of imported goods	1,12,78,310
Total Customs Duty payable (₹ 9,07,200 + ₹ 90,720 + ₹ 12,08,390)	22,06,310

Question 6.
Following particulars are available in respect of consignment of goods imported:

• Cost at the factory of the exporter: US$ 20,000
• Carriage/Freight/insurance up to the port of shipment in the exporter’s country: US$ 400
• Charges for loading onto the ship at the shipping port: US$ 100
• Freight charges of the ship for transport up to Indian port: US$ 1,200

Compute the assessable value for the purpose of levy/payment of customs duty.

Answer:
Computation of Assessable value for imported goods as per section 14 of Customs Act read with Rule 10 of Customs Valuation Rules:

Particulars	Amount in US$
Cost of Goods at the factory of Exporter	20,000
Add: Carriage/Freight/insurance up to the port of shipment in the exporter’s country	400
Add: Charges for loading onto the ship at the shipping port	100
FOB Value of the goods	20,500
Add Freight charges of the ship for transport up to the Indian port – Rule 10(2) of Customs Valuation Rules.	1,200
Add:Insurance(UNASCERTAINABLE,therefore, 1.12596ofFOB Value) – Rule 10(2) of Customs Valuation Rules.	230.63
Therefore, CIF Value/Assessable Value	21,930.63

Note:
1 Carriage/Freight/Insurance, as well as charges for loading onto the ship, shall be included in the assessable value as these charges are necessary for importation and are incurred at the place of export.

Question 7.
Care Energy Ltd. imported a lift from England at an invoice price of ₹ 20,00,000. The assessee had supplied raw material worth ₹ 5,00,000 to the supplier for the manufacture of said lift. Due to safety reasons, the lift was not taken to the jetty in the port but was unloaded at the outer anchorage. The charges incurred for such unloading amounted to ₹ 25,000 and the cost incurred on the transport of lift from outer anchorage to jetty was ₹ 50,000. The importer was also required to pay ship demurrage charges of ₹ 10,000. The lift was imported at an actual cost of transport of ₹ 45,000 and insurance charges of ₹ 20,000. Compute its assessable value.
Answer:
Computation of assessable value for Care Energy Ltd. of the Lift imported from England:

Particulars		Amount(₹)
FOB Value, being the Invoice price		20,00,000
Add: Raw material supplied by the assessee (Adjustment of Rule 10(1) of Customs Valuation Rules)		5,00,000
FOB Value of Customs		25,00,000
Add: Adjustments as per Rule 10(2) of Customs Valuation Rules
Sea Freight	45,000
Ship Demurrage charges	10,000
Lighterage	25,000
Barge charges	50,000	1,30,000
Insurance cost (Actual)		20,000
CIF Value/Assessable Value		26,50,000

Note:
The cost of transportation of the imported goods includes the ship demurrage charges on chartered vessels, lighterage and barge charges i.e. any 1 cost in relation to transport from exporter’s port to importer’s port should be added in the FOB as an adjustment of Rule 10(2) of Customs Valuation Rules while computing Assessable Value.

Question 8.
Bhaskar Ltd. has imported certain equipment from Japan at a CIF value of 5,00,000 Yen. Other details are as under:

Air Freight	90,000 Yen
Insurance charges	10,000 Yen
Freight from airport to factory in India	₹ 20,000
Date of presentation of Bill of Entry (Exchange Rate notified by CBIC: 1 Yen = ₹ 0.40)	28th April 2020
Date of arrival of goods in India (Exchange rate notified by CBIC: 1 Yen = ₹ 0.42)	8th May 2020
Commission payable to an agent in India (Not included in CIF value of 5,00,000 Yen)	10% of FOB cost in Indian ₹

Arrive at the Assessable Value for the purposes of customs duty providing brief notes wherever required with appropriate assumptions.
Answer:

Particulars	Currency	Amount
CIF Value	Yen	5,00,000
Less: Air Freight	Yen	90,000
Less: Insurance charges	Yen	10,000
FOB Value	Yen	4,00,000
FOB Value in ? by applying the rate of exchange as notified by CBIC as on date of presentation of Bill of Entry. Yen 4,00,000 × ₹ 0.40)	₹	1,60,000
Add: Commission payable to Indian agent (Yen 4,00,000 × 10.40 × 10%)	₹	16,000
FOB Value	₹	1,76,000
Add: Air Freight, restricted to 20% of FOB Value as goods are imported by Air (Yen 90,000 × 0.40 = 136,000 or ₹ 1,76,000 × 20% = ₹ 35,200, whichever is-less)	₹	35,200
Add: Insurance charges (Actual. Therefore, Yen 10,000 × 0.40)	₹	4,000
Therefore, CIF Value/Assessable Value	₹	2,15,200

Note:
Any post importation transport cost is to be neglected as it is not supposed to form part of assessable value. Therefore, Freight from airport to factory in India amounting to ₹ 20,000 is neglected while computing assessable value.

Question 9.
The following information is furnished by Kanha in respect of articles of Jewellery imported from the USA:

FOB	US$ 20,000
Exchange Rate	1 US$ = ₹ 65
Air Freight	US$ 4,500
Insurance charges	Not known
Landing charges	₹ 1,000
Basic Customs Duty	10%
IGST leviable u/s 3(7)	12%

Calculate the total customs duty payable by Kanha.
Answer:
Computation of Customs duty payable by Kanha:

Particulars	Currency	Amount(₹)
FOB Value of goods	US$	20,000
Add: Adjustments of Rule 10(2) of Customs Valuation Rules
Air Freight (Actual or 20% of FOB, whichever is lower ie. US$ 4,500 or 20% of US$ 20,000 = US$ 4,000, whichever is lower.)	us$	4,000
Insurance (Not known, therefore, 1.125% of FOB i.e. 1.125% of US$ 20,000)	us$	225
Therefore, CIF Value/Assessable Value	us$	24,225
Assessable Value Converted int (US$ 24,225 × ₹ 65)	₹	15,74,625
Add: Basic Customs Duty @10%	₹	1,57,463
Add: Social Welfare Surcharge (SWS) at 10% of Basic Customs Duty	₹	15,746
Value for the purpose of levy of IGST	₹	17,47,834
Add: IGST u/s 3(7) @ 12%	₹	2,09,740
Total Cost of imported goods	₹	19,57,574
Total Customs Duty payable (₹ 1,57,463 + ₹ 15,746 + ₹ 2,09,740)	₹	3,82,949

Question 10.
Honest importers imported a machine with accessories from the USA. Compute the assessable value and customs duty payable thereon from
the following data:

CIF Value of the machine (including accessories)	US$1,50,000
CIF Value of accessories compulsorily supplied along with machine	US$ 30,000
(Not shown separately in the invoice)
Rate of basic customs duty on machine	10%
Rate of basic customs duty on accessories	20%
Social Welfare Surcharge (SWS)	10%
Exchange Rate	1 US$ = 1 60
The effective rate of IGST on similar goods in India	12%

Answer:

Computation of Assessable Value and Customs Duty payable by Honest Importers on Machine imported from the US:

Particulars	Amount (₹)
CIF Value of the machine (inclusive of accessories) (US$1,50,000 × ₹ 60}/Assessable Value	90,00,000
Add: Basic Customs Duty @10%	9,00,000
Add: Social Welfare Surcharge @ 10% of Basic Customs Duty	90,000
Value for the purpose of levy of IGST	99,90,000
Add: IGST u/s 3(7) @ 12%	11,98,800
Total Cost of imported goods	1,11,88,800
Therefore, Total customs duty payable (₹ 9,00,000 + ₹ 90,000 + ₹ 11,98,800) or; (Cost of imported goods – Assessable Value) i.e. 1,11,88,800 less 90,00,000	21,88,800

Note:
As per Accessories (Conditions) Rules, 1963, accessories and spare parts compulsorily supplied with main implements are chargeable at the same rate as applicable to the main machine. Therefore, such accessories shall also be chargeable with duty at the rate applicable to the machine i.e. @ 10% ad valorem.

Question 11.
Determine the assessable value for computation of customs duty from the following information relating to a machine imported from the USA by an Indian Company:

Cost of Machine	US$ 25,000
Cost of goods supplied by the importer to the exporter to be used in the manufacturing of machine	₹ 2,00,000
Design and development charges payable to exporter	US$ 9,000
Installation charges of a machine	₹ 1,00,000
Packing and Insurance charges	US$ 1,000
Freight	US$ 1,000
Transportation charges of the machine from port to the place of installation	₹ 50,000

Note:
The exchange rate declared by RBI was ₹ 61 per US$ while the rate declared by the Board was ₹ 60 per US$.

Answer:
Computation of Assessable Value in case of imported goods:

Particulars	Amount(₹)
Cost of Machine (US$ 25,000 × ₹ 60)	15,00,000
Add: Cost of goods supplied by the importer to the exporter to be used in the manufacturing of machine (Rule 10(1) of Customs Valuation Rules)	2,00,000
Add: Development and design charges payable to the exporter (US$ 9,000 × ₹ 60)	5,40,000
Add: Packing and insurance charges (US$ 1,000 × 60)	60,000
FOB Value	23,00,000
Add: Freight (US$ 1,000 × 60)	60,000
Therefore, CIF Value/Assessable Value	23,60,000

Note:
The rate of Exchange as notified by CBIC is to be considered and hence it is taken at US$ 1 = ₹ 60. The exchange rate declared by RBI is to be neglected.

Question 12.
Zhi Ltd. has imported a machine to be used for providing a taxable service. The assessable value of the imported machine as approved by customs is ₹ 5,00,000. Customs Duty at 10% is payable. Further, if the machine is supplied in India, IGST @ 12% is leviable on such machine. Social Welfare Surcharge is applicable at prevailing rates.
You are required to:

1. Calculate the total customs duty payable on such machine; and
2. Examine whether Zuhi Ltd. can avail Input Tax Credit and if yes, how much Input Tax Credit can be availed.

Answer:
1. Computation of total Customs Duty payable:

Particulars	Amount (₹)
Assessable Value of imported machine	5,00,000
Add: Basic Customs Duty at 10%	50,000
Add: Social Welfare Surcharge at 10% of Basic Customs Duty	5,000
Value for the purpose of levy of IGST	5,55,000
Add: IGST @ 12%	66,600
Total Cost of imported Goods	6,21,600
Therefore, Total Customs Duty payable	1,21,600

2. Zuhi Ltd. can avail Input Tax Credit only for IGST of ₹ 66,600. It should g be noted that Input Tax Credit cannot be availed with respect to basic p customs duty as well as Social Welfare Surcharge (SWS).

Question 13.
SM Ltd. imported machinery at a FOB value of ₹ 34,00,000. Does this sum include ₹ 4,00,000 attributable to post importation activities to be called by the seller? SM Ltd. had supplied raw material to the seller worth ₹ 10,00,000 for the manufacture of said machine. The goods were imported by vessel and the actual cost of transport is ₹ 1,60,000. The importer has also paid demurrage charges of ₹ 10,000 and lighterage and barge charges ₹ 30,000, in addition, to said ₹ 1,60,000. SM Ltd. also paid ₹ 50,000 for transportation of goods from the port of entry to the Inland Container. The actual cost of insurance is ₹ 1,00,000.

Compute the assessable value based on Rule 3 read with Rule 10 of the Customs Valuation Rules, 2007, assuming the amount attributable to post importation activities is not payable as a condition of sale of imported goods.
Answer:
Computation of Assessable Value of imported goods

Particulars	Amount(₹)	Amount(₹)
Invoice Price of goods including amount attributable to post importation activities		34,00,000
Less: Amount attributable to post importation activities included above		(4,00,000)
Net Amount to be considered		30,00,000
Add: Raw material supplied by the assessee as per Rule 10(1) of Customs Valuation Rules		10,00,000
FOB Value of Goods		40,00,000
Add Adjustments as per Rule 10(2) of Customs Valuation Rules.
Transport cost
Sea Freight	1,60,000
Ship Demurrage charges	10,000
Lighterage and Barge charges	30,000	2,00,000
Insurance (Actual)		1,00,000
Therefore, CIF Value/Assessable Value		43,00,000

Notes:
1. The cost of transport of imported goods includes the ship demurrage charges on charted vessels, lighterage or barge charges. Therefore, amounts towards those are added to the FOB value of goods while computing assessable value.

2. Charges for post importation activities shall not form part of the assessable value of goods, since the same are not payable as a condition of sale. Hence, they are deducted from ₹ 34,00,000 Le. Invoice price as it included the same.

3. Freight incurred from the port of entry to inland container depot is not includible in assessable value as it is posted importation transportation cost.

Question 14.
A material was imported by air at a CIF price of US$ 5,000. Freight paid was US$ 1,500 and insurance cost was US$ 500. The banker realized the payment from the importer at the exchange rate of ₹ 65 per US dollar. Central Board of Indirect Taxes and Customs (CBIC) notified the exchange rate at ₹ 63 per US$. Find the value of material for the purpose of levying customs duty.
Answer:
Computation of Assessable Value of imported goods:

Particulars	Amount
CIF Value of goods	5,000
Less: Air Freight	(1,500)
Less: Insurance Charges	(500)
FOB Value	3,000
Add: Adjustments as per Rule 10(2) of Customs Valuation Rules
Freight (As it is by air, it shall be lower of 2: Actual i.e. US$ 1,500 or 20% of FOB i.e. 20% of US$ 3,000 = US$ 600)	600
Insurance (Actual)	500
CIF Value/Assessable Value in US$	4,100
Therefore, Assessable Value converted in ₹ by applying the rate of exchange as notified by CBIC as on date of presentation of Bill of Entry (the US $ 4,100 × ₹ 63)	2,58,300

Question 15.
Compute the total customs duties and integrated tax payable based on the following information:

• FOB Value of Solar cells: US$ 1,000
• Freight from exporting country: US$ 250
• Insurance: US$10
• Buying Commission: US$ 50
• Date of filing Bill of Entry: 20th January 2020 (Rate of Basic Customs Duty: 5%, Safeguard Duty: 70%)
• Exchange rate notified by RBI: ₹ 70.05 and by CBIC: 170 for 1 US$ on date of presentation of the bill of entry.

Answer:
Computation of total Customs duty and Integrated tax payable

Particulars	Amount (US$)
FOB Value of solar cells	1,000
Freight from exporting country (Note 1)	200
Insurance	10
Buying commission (Note 2)	–
CIF Value	1,210
	Amount (₹)
CIF Value (US$1,210 × ₹ 70 per US$) (Note 3) i.e. Assessable Value in ₹	84,700
Basic Customs Duty @ 5% (Note 4) (₹ 84,700 × 5%) (A)	4,235
Safeguard Duty @ 70% (Note 5) (B)	59,290
Social Welfare @ 10% of Basic Customs Duty (Note 6) (C)	424
Value for levy of IGST	1,48,649
Integrated Tax leviable @ 5% (₹ 1,48,649 × 5%) (Note 7) (D)	7,432
Total Cost of imported goods	1,56,081
Total Customs Duty payable (A + B + C + D)	71,381

Notes:

1. Actual freight incurred or 20% whichever is less has to be adopted when the import is by air (Assumed). If it is assumed that goods are imported by any mode other than by air then the full value of freight US $ 250 shall be included in the assessable value.

2. “Buying commission” is not included in the assessable value as it is the amount paid by the importer to his agent [Any amount paid to exporter directly or indirectly is only included],

3. Rate of exchange notified by CBIC on the date of presentation of the bill of entry is considered.

4. Rate of duty is the rate prevalent on the date of presentation of the bill of entry or the rate prevalent on the date of entry inwards whichever is later (Section 15 of Customs Act, 1962)

5. Safeguard duty has to be applied on the CIF Value

6. Social welfare surcharge is levied @10% on Basic Custom Duty only.

7. Integrated tax is levied on the sum total of the assessable value of the imported goods, customs duties, and applicable Social Welfare Surcharge. The integrated tax rate is assumed to be 5%.

Question 16.
A commodity is imported into India from a country covered by a notification issued by the Central Government under section 9A of the Customs Tariff Act, 1975. Following particulars are made available:
CIF Value of the consignment: US$ 25,000
Quantity imported: 500 kgs
Exchange rate applicable: ₹ 65 = 1 US$
Basic customs duty: 10%
SWS as applicable.

As per the notification, the anti-dumping duty will be equal to the difference between the cost of the commodity calculated at US$ 70 per kg. and the landed value of the commodity as imported.

Appraise the liability on account of normal duties, cess, and anti-dumping duty. Assume that only Basic customs duty and SWS are payable.
Answer:
Computation of basic customs duty, SWS, and Anti-Dumping duty payable:

Particulars	Amount(?)
CIF Value of the Consignment/Assessable Value (US $ 25,000 X ? 65 per US $)	16,25,000
Add: Basic Customs Duty @10%	1,62,500
Add: Social Welfare Surcharge at 10% of Basic Customs Duty	16,250
Landed Value	18,03,750
Cost of commodity for purpose of Anti-Dumping duty notification (500 Kg X US$70 per kg X ? 65 per US $)	22,75,000
Anti-Dumping Duty (? 22,75,000 – ? 18,03,750)	4,71,250

Notes:

1. IGST under section 3 (7) of Customs Tariff Act is not leviable as the question clearly states that only Basic Customs Duty and SWS are chargeable apart from Anti-Dumping Duty.

2. For the purpose of notification imposing Anti-Dumping Duty, “landed value” means the assessable value as determined under the Customs Act, 1962 and includes all duties of customs except duties levied under sections 3, 8B, 9, and 9A of the Customs Tariff Act.

3. No SWS is imposable on Anti-Dumping Duty.

Question 17.
Miss Priya imported certain goods weighing 1000 kgs having a CIF value of US$ 40,000. The exchange rate of 1 USD was ₹ 65 on the date of presentation of a bill of entry. Basic customs duty chargeable is @ 10% and Social Welfare Cess is as applicable. However, vide Notification issued by the Government of India, anti-dumping duty has been imposed on these goods.

The anti-dumping duty will be equal to the difference between the amount calculated @ USD 60 per kg and the ‘landed value’ of goods. You are required to compute the amount of customs duty and of the anti-dumping duty payable by Miss Priya.
Note:
Neglect GST.
Answer:
Computation of amount of Customs Duty payable including the Anti-Dumping duty

Particulars	Amount (₹)
CIF Value of the consignment i.e. Assessable Value in ₹ (US$ 40,000 × ₹ 65 per US$)	26,00,000
Add: Basic Customs Duty @ 10%	2,60,000
Add: Social Welfare Surcharge (S’W S) @ 10% of Basic Customs Duty	26,000
Therefore, Landed Value of the Goods	28,86,000
Cost of commodity for the purposes of Anti-Dumping notification (1,000 kgs × US$ 60 per kg × ₹ 65 per dollar)	39,00,000
Anti Dumping Duty payable (₹ 39,00,000 – ₹ 28,86,000)	10,14,000
Therefore, Total Customs Duty payable (₹ 2,60,000 + ₹ 26,000 + ₹ 10,14,000)	13,00,000

Note: For the purposes of notification imposing Anti-Dumping duty, landed | value means the assessable value as determined under the Customs Act,1962 and includes all duties of customs except duties levied under sections 3, 8B, 9, and 9A of the said Customs Tariff Act, 1975.

Question 18.
With reference to section 9AA of the Customs Tariff Act, 1975, state briefly the provisions of refund of anti-dumping duty with reference to relevant case law.
Answer:
According to the provisions of Section 9AA of the Customs Tariff Act, 1975, wherein importer proves to the satisfaction of the Central Government that he has paid any anti-dumping duty imposed on any article, in excess of the actual margin on dumping in relation to such article, he shall be entitled to refund of such duty. However, the importer will not be entitled to a refund of provisional anti-dumping duty under Section 9AA as the same is refundable under section 9A(2) of the said Act. Refund of excess anti-dumping duty paid is subject to provisions of unjust enrichment. This view was held by Apex Court in the case of – Automotive Type Manufacturers Association v. Designated Authority 2011 (63) ELT 481 Whether Anti-dumping duty/safeguard duty is to be added for determining the value for integrated tax?

Question 19.
The assessable value of an article imported into India is ₹ 100; Basic Customs Duty is 10% ad valorem; Social Welfare Charge is 10%; Safeguard duty is ₹ 20; Integrated tax rate is 18% and Compensation cess is 15%. Compute total tax liability
Answer:
Yes. In cases where imported goods are liable to Anti-Dumping Duty or Safeguard Duty, value for calculation of IGST as well as Compensation Cess shall also include Anti-Dumping Duty amount and Safeguard duty amount.

Particulars	Amount (₹)
Assessable Value	100
Basic Customs Duty @10%	10
Social Welfare Surcharge (SWS) @ 10% of 10	1
Safeguard Duty	20
Value for purpose of IGST (₹ 100 + 10 + 1 + 20)	131
Integrated Tax @ 18% (₹ 131 × 18%)	24
Compensation Cess @ 15% of ₹ 131	20
Total Tax liability (₹ 10 + 1 + 20 + 24 + 20)	75

Question 20.
A consignment of 800 metric tonnes of edible oil of Malaysian origin was imported by a Charitable organization in India for free distribution to below poverty line citizens in a backward area under the scheme designed by the Food and Agricultural Organisation. This being a special transaction, a nominal price of US$ 10 per metric tonne was charged for the consignment to cover the freight and insurance charges. The Customs house found out that at or about the time of importation of this gift consignment, there were the following imports of edible oil of Malaysian origin:

Quantity imported in metric tonnes	Unit Price in US$ CIF
20	260
100	220
500	200
900	175
400	180
780	160

The rate of exchange on the relevant date was 1 US$ = ₹ 65 and the rate of basic customs duty was 10% ad valorem. There is no Integrated tax and GST Compensation Cess.

Calculate the amount of duty leviable on the consignment under the Customs Act, 1962 with appropriate assumptions and explanations where required.
Answer:
Computation of Assessable Value as per Rule 4 of Customs Valuation Rules i.e. Valuation on basis of Identical goods and total Customs duty payable: 1

Particulars	Amount(₹)
CIF Value i.e. Assessable Value of 800 metric tonnes @ US$ 160 per metric tonne (Converted in ₹ : 800 × 160 × ₹ 65)	83,20,000
Add: Basic Customs Duty @10%	8,32,000
Add: SWS at 10% of Basic Customs Duty	83,200
The total cost of imported goods	92,35,200
Total Customs Duty payable (₹ 8,32,000 + ₹ 83,200) or (₹ 92,35,200 – 83,20,000)	9,15,200

Notes:

1. In the given case, US$ 10 per metric tonne has been paid only towards freight and insurance charges and no amount has been paid or payable towards the cost of goods. Thus, there is no transaction value for the said goods. In such a case, the value of imported goods shall be the transaction value of identical goods sold for export to India and imported at or about the same time as the goods being valued. (Rule 4 of Customs Valuation Rules)

2. The transaction value of comparable imports should be at the same commercial level and in substantially the same quantity as the goods being valued. Therefore, consignments of 20 and loo metric tonnes cannot be considered to be substantially the same quantity. Hence, the remaining 4 consignments are left for our consideration.

3. Remaining 4 consignments are incomparable quantities that can be considered for valuation purposes. However, the unit prices in the 4 consignments are different. Rule 4 of Customs Valuation Rules stipulates that in applying Rule 4 of said Rules if more than one transaction value of identical goods is found, the lowest of such value shall be used to determine the value of imported goods. Accordingly, the unit price of consignment undervaluation is taken at US$ 160 per metric tonne.

Question 21.
From the following information you are required to determine the export duty and explain your assumptions:

• FOB Price of goods: US$ 1,20,000
• Shipping Bill presented electronically on: 26.04.2020
• The proper officer passed the order permitting clearance and loading of goods for export on: 5.5.2020
• The rate of Exchange and Rate of Export duty is as under:

Date	Rate of Exchange	Rate of Export Duty
26.04.2020	1 US $ = > 60	9%
05.05.2020	1 US $ = > 61	10%

(e) Rate of exchange is notified for export by CBIC.
Answer:
Computation of Export Duty payable

Particulars	Amount(₹)
Transaction Value of exports is FOB price of goods (No Further adjustment is to be made)	US$ 1,20,000
Rate of Exchange (it is to be taken as notified by CBIC as on date of presentation of shipping bill as per section 14 of Customs Act)	₹ 60 per US$
Assessable Value in ₹ (US$ 1,20,000 × ₹ 60)	₹ 72,00,000
Rate of duty (it is as on the date on which Proper Officer makes an order permitting clearance and loading of the goods for exportation)	10%
Exports Duty payable @ 10% (No Social Welfare Surcharge is levied on exports)	₹ 7,20,000

Question 22.
Ms. Poorvisha has exported some goods to Sydney, Australia. She provides the following details to you:

1. CIF value of the goods = AUD 2,10,000.
2. FOB price of goods: (Australian $) AUD 2,00,000.
3.  Shipping bill presented electronically on 29th April 2020.
4. The proper officer passed an order permitting clearance and loading of goods for export (Let Export Order) on 2nd May 2020.
5. During the interval between the presentation of the shipping bill and clearance of goods, there were changes in the rate of export duty as well as the rate of exchange.

The rate of export duty and rate of exchange details are as follows:

Date	Rate of exchange	Rate of Export duty
29-04-2020	1 AUD = ₹ 70	11%
02-05-2020	1 AUD = ₹ 70.50	10%

You are required to calculate the export duty payable by the exporter.
Answer:
Computation of export Duty Payable

Particulars	Amount(₹)
FOB price of goods [Note 1]	AUD 200,000
Value in Indian currency (AUD 2,00,000 × t 70) [Note 2]	₹ 1,40,00,000
Export duty @ 10% [Note 3]	₹ 14,00,000

Notes:
1. As per section 14(1) of the Customs Act, 1962, the assessable value of the export goods is the transaction value of such goods which is the price actually paid or payable for the goods when sold for export from India for delivery at the time and place of exportation.

2. As per the third proviso to section 14(1) of the Customs Act, 1962, assessable value has to be calculated with reference to the rate of exchange notified by the CBIC on the date of presentation of a shipping bill of export.

3. As per section 16(7)(n) of the Customs Act, 1962, in case of goods entered for export, the rate of duty prevalent on the date on which the proper officer makes an order permitting clearance and loading of the goods for exportation, is considered.

Question 23.
Is the transaction value under the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, acceptable even if goods are sold to related persons? Give reasons.
Answer:
As per Rule 3(3), of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 in the following two cases the transaction value shall be accepted even if goods are sold to related persons:

1. the examination of the circumstances of the sale of the imported goods indicates that the relationship did not influence the price.
2. whenever the importer demonstrates that the declared value of the goods being valued closely approximates to one of the following values ascertained at or about the same time:

• the transaction value of identical goods, or of similar goods, in sales to unrelated buyers in India;
• the deductive value for identical goods or similar goods;
• the computed value for identical goods or similar goods:

Provided that in applying the values used for comparison, due account | shall be taken of demonstrated difference in commercial levels, quantity levels, adjustments in accordance with the provisions of Rule 10, and cost incurred by the seller in sales in which he and the buyers are not related.

Question 24.
St. Thomas Hospital and Research Centre imported a machine from Long Life Scientific Ltd., the USA for in-house research. The price of the machine was settled at the US $ 8,000. The machine was shipped on 10th March 2020. Meanwhile, the hospital authorities negotiated for a reduction in the price. As a result, Long Life Scientific Ltd. agreed to reduce the price by $ 500 and communicated the revised price of $ 7,500 by sending a fax message dated 14th March 2020. The machine arrived in India on 17th March 2020. The Commissioner of Customs has decided to take the original price as the transaction value of the goods on the ground that the price is reduced only after the goods have been shipped. Do you agree with the step taken by the commissioner? Give reasons in support of your answer.
Answer:
No, the commissioner’s approach is not correct in the law. As per section 14 of the Customs Act, 1962, the transaction value is the price actually paid or payable for the goods when sold for export to India for delivery at the time and place of importation. Further, the Supreme Court in the case of “Garden Silk Mills y. U 01” has held that importation gets complete only when the goods become part of the mass of goods within the country.

In the given case, the price of the goods was reduced while the goods were in transit, it could not be contended that the price was revised after importation took place. Hence, the goods should be valued as per the reduced price, which was the price actually paid at the time of importation.

Question 25.
Write a short note on the following:
(a) Safeguard Duty
(b) Anti-dumping duty
Answer:
(a) Safeguard Duty (Section 8 of Customs Tariff Act, 1975)
The Central Government may impose safeguard duty on specified imported goods if it is satisfied that the goods are being imported in large quantities and they are causing serious injury to the domestic industry. The safeguard duty is imposed for the purpose of protecting the interests of any domestic industry in India aiming to make it more competitive.

Conditions:
1. Safeguard duty is product-specific.
2. It is in addition to any other duty.

Safeguard duty, unless revoked earlier, cease to have an effect on the expiry of four years from the date of imposition. If the Central Government is of the opinion that the domestic industry has taken measures to adjust to such injury or threat thereof and it is necessary that the safeguard duty should continue to be imposed, it may extend the period of such imposition.

However, in no case, the safeguard duty shall continue to be imposed beyond a period of ten years from the date on which such duty was first imposed. If the Central Government is of the opinion that increased imports have not caused or threatened to cause serious injury to a domestic industry, it shall refund the duty so collected.

Exemptions from safeguard duty:
1. If an article originating from a developing country and the share of imports of that article from that country does not exceed 3% of the total imports of that article in India it should be exempted from safeguard duty.

2. If an article originating from more than one developing country and aggregate of imports from developing countries each with less than 3% import share taken together does not exceed 9% of the total imports of that article into India then it should be exempted from safeguard duty. Articles imported by 100% EOU or units in a free trade zone or Special Economic Zone safeguard duty shall not be applicable unless specifically made applicable in the notification.

(2) Anti-Dumping Duty (Section 9 of Customs Tariff Act, 1975)

Dumping: Dumping means exporting goods to India, at prices lower than the price in the domestic market of the exporting country, subject to certain adjustments.
When the export price of a product imported into India is less than the normal value of like articles sold in the domestic market of the exporter the Central Government may, by notification in the Official Gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to such article. Anti-dumping duty is country-specific ie. it is imposed on imports from a particular country. Normal value means the comparable price in the ordinary course of trade, in the exporting country, after making adjustments to the extent of conditions of sale, taxation, etc.

Computation of Anti-dumping duty: The anti-dumping duty is the margin of dumping or injury margin whichever is lower.

The margin of dumping: Difference between the export price and normal value of an article.

Normal Value means the comparable price in the ordinary course of trade, in the exporting country, after making adjustments to the extent of conditions of sale, taxation, etc.

Injury Margin: It means the difference between the fair selling price of domestic industry and the landed cost of imported products.

Fair Selling price: Price at which the industry has expected to charge under normal circumstances in the Indian market.

Valuation Of Imports And Exports Notes

• Format for computation of Assessable Value in case of imported | goods as per section 14 of Customs Act read with Rule 10 of Customs Valuation Rules: I

Particulars	Amount
a. Price of the goods at exporter’s factorv/godown/shop	xxxx
b.Add: Cost of transporting goods from exporters factory to the exporter’s port, insurance, loading charges at exporter’s port, etc.	Xxxx
c. Free on Board Price (FOB) of the goods	Xxxx
d. Add: Adjustments as per Rule 10(1) of Customs Valuation Rules (Excluding buying commission, charges for post importation activities)	Xxxx
e. Customs FOB (As per ICAI’s recommendation)	Xxxx
f. Add: Adj ustnwnts as per Rule 10(2) of Customs Valuation Rules:	Xxxx
(a) Actual Cost of transportation, loading, unloading and handling charges associated with the delivers’ of imported goods to the place of importation. (In case of AIR, it shall be actual or 20% of FOB, whichever is lower). If Transport cost is UNASCERTA1NABLE, then 20% of FOB value. If FOB Value is also not ascertainable, then it will be 20% of  “FoB Value + Cost of Insurance”	Xxxx
(b) Actual cost of Insurance. If UNASCERTAINABLE – 1.125% of the FOB. If FOB value is not ascertainable, then it will be 1.125%of “FOB + cost of transportation, loading, unloading and handling charges”	Xxxx
CIF Value i.e. Assessable Value for the purpose of computing customs duties. (1f it is in foreign currency, convert in  by applying rate of exchange as notified by CBIC as on date of presentation of Bill of Entry)	xxxx

However, if the valuation cannot be done as per section 14, then sequentially, the following rules will be applied:

Rule 4: Identical Goods
Rule 5: Similar Goods
Rule 6: Residual method
Rule 7: Deductive Value
Rule 8: Computed Value

• Types of duties under customs:

a. Basic customs duty
b. Integrated Tax – Section 3(7) of Customs Tariff Act, 1975
c. Goods and Services Tax Compensation Cess – Section 3(9) of Customs Tariff Act, 1975
d. Additional Duty of Customs (Countervailing Duty i.e. CVD) – Section 3 of Customs Tariff Act (Equivalent to Excise duty which still is leviable on the manufacture of some goods)
e. Special Additional Duty (Special Countervailing Duty Le. Special CVD) – It is to offset the effect of VAT (It is applicable on some limited goods)
f. Protective Duty
g. Safeguard Duty
h. Countervailing Duty on subsidized articles Anti-Dumping Duty
j. Social Welfare Surcharge
k. Road and Infrastructure Cess

Valuation for Exports:
Price paid/payable for delivery at the time and place of Exportation which essentially means that the price up to a port in India when goods are exported has to be considered. (Le. FOB Value of Exports is its assessable value)

CS Professional Advance Tax Law Notes