Adviser to Global SME’S
An ISO 9001 : 2008 Certified Company
|Vat Services||Service Tax||Custom Excise Consultancy||Entry Tax Services|
Custom Excise Consultancy
Further, the custom tax advisory services also involves service areas including –
Handling requirements of customers in terms of service tax
Presently, we are successfully serving the customers based in services, IT and manufacturing sector who find our services extremely beneficial and useful. As service providers for service tax, we hold expertise in handling all issues in relation to service tax, central excise and customs that is based on completely outsourced model. Further, our strong and comprehensive service support that arises from arising out of better understanding of service tax related issues has also helped customers to save significant amount.
Custom excise duty are levied on import of goods into India at the rates specified in the Customs Tariff Act, 1975. The effective rates of customs duties may vary pursuant to general and / or specific exemption or concession notifications issued by the government in this regard.
Custom excise duty in India currently comprise the following:
- Basic Customs Duty (BCD) – Current general peak rate is 15 per cent.
- Countervailing Duty (CVD) – This duty is equivalent to central excise duty leviable on a like product manufactured in India. Current rate applicable to majority of the industrial products is 16 per cent plus 2 per cent education cess, taking the effective rate to 16.32 per cent. This duty is calculated on the value of product + basic customs duty.
- Additional Duty of Customs (ADC) – This duty is levied to countervail the sales tax, value-added tax, local taxes and other charges leviable on the like goods on their sale or purchase or transportation in India. Presently, this duty is levied at 4 per cent on certain items viz items bound under the Information Technology (IT) Agreement and on specified inputs / raw materials for manufacture of electronic / IT goods. This duty is levied on value of product +basic customs duty + countervailing duty.
- Education Cess – This cess is levied at 2 per cent on the amount of BCD +CVD.
Import of goods into and export from India is regulated by the Foreign Trade Policy (the Policy) issued from time to time by Government of India. The Policy remains in force for five years and is amended from time to time. The Policy currently in force is for tax year 2004-09. Majority of goods are now freely importable.
Central Excise Duty (CENVAT)
Central Excise Duty (CENVAT) is levied on goods manufactured and produced in India. It is levied under the authority of the Central Excise Act, 1944 at the rates prescribed in the First Schedule and Second Schedule to the Central Excise Tariff Act, 1985 as amended by Central Excise Tariff (Amendment) Act, 2004. In addition, education cess at 2 per cent on excise duty amount is levied by Finance (No. 2) Act, 2004. The effective rates may be lower pursuant to general /specific notifications issued by the government granting whole or partial exemption from duty. The duty, in most cases, is levied on the basis of value of the excisable goods.
Value, for this purpose, with effect from 1 July 2000 is the “transaction value” which is:
- For delivery at the time and place of removal;
- Where buyer is not a related person; and
- Price is the sole consideration.