How is basic custom duty calculated?
The assessable value (AV) of imports is Rs 100000. The BCD (basic custom duty) is @ 10 %. IGST is payable @ 12%. Compensation Cess is 10%, SWS is 10%.
What is basic custom duty?
Basic custom duty is the duty imposed on the value of the goods at a specific rate. The duty is fixed at a specified rate of ad-valorem basis. This duty has been imposed from 1962 and was amended from time to time and today is regulated by the Customs Tariff Act of 1975.
What is the import duty on solar panels from China?
The finance ministry will issue an order to impose a basic customs duty of 40% on modules and 25% on solar cells as part of the Atmanirbhar Bharat or self-reliant India strategy, Singh said in an interview. The customs duty will replace a 15% safeguard duty that is being imposed on imports from China and Malaysia.
How many percent is custom duty?
Basic Customs Duty varies for different items from 5% to 40%. The duty rates are mentioned in the First Schedule of the Customs Tariff Act, 1975 and have been amended from time to time under the Finance Act. The duty may be fixed on ad –valorem basis or specific rate basis.
How is import duty calculated?
Basic Customs Duty (BCD): This is the tax that is calculated on the Assessment Value of the goods that have landed at the customs border of India. It can vary between 0% to 100%. BCD depends upon the HSN code of the product and the Country of Import.
How much is customs duty?
The Indian government assesses a 1% customs handling fee on all imports in addition to the applied customs duty. Therefore, for most goods, total duty payable = BCD + Customs Handling Fee.
What is custom duty example?
Customs duty refers to the tax imposed on goods when they are transported across international borders. In simple terms, it is the tax that is levied on import and export of goods. The government uses this duty to raise its revenues, safeguard domestic industries, and regulate movement of goods.
What is difference between custom duty and import duty?
What is Custom Duty? Custom duty is a type of indirect tax that is levied on all the goods that are imported to the country as well as some goods exported from the country. The duty levied on the former is referred to as import duty while that on the latter is referred to as the export duty.
What is safeguard duty on solar?
The 25% safeguard duty, announced on July 30, 2018, was imposed on solar cell and module imports from China and Malaysia. The duty of 25% for the first year was phased down from the second year, with the rate reduced by 5% every six months until it ended in July 2020.
What is the rate of solar panel?
Luminous Solar Panel Price List, 2021
|Solar Panel Ratings||Selling Price||Per watt Price|
|Luminous 75 Watt / 12V Solar Panels||₹ 4300||₹ 57|
|Luminous 105 Watt / 12V Solar Panels||₹ 5400||₹ 51|
|Luminous 165 Watt / 12V Solar Panels||₹ 8300||₹ 50|
|Luminous 330 Watt / 24V Solar Panels||₹ 11000||₹ 33|
What is safeguard duty?
Safeguard duties only protect a section of Indian PV manufacturers. While cell manufacturers would benefit, a considerable chunk of module manufacturers are reliant on imported cells, which will result in an increase in input cost. … In the current form, the safeguard duty hinders the reduction in solar tariffs.