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Custom Excise Consultancy
Custom Excise Consultancy Services
offered by us involves handling the requirements of Custom excise duty that
is levied on import of goods into India at rates specified in Customs Tariff
Act, 1975. The Custom excise duty in India comprises Basic Customs Duty
(BCD), Countervailing Duty (CVD), Additional Duty of Customs (ADC) and
Education Cess. Here, our team of experts makes us well qualified to handle
the consultancy demands.
Further, the custom
tax advisory services also involves service areas including –
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
- 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
In addition, government also levies
anti-dumping and safeguard duties on specified products for specified
periods. "Value" for the purpose of levy of customs duty is "transaction
value" in the course of international trade in arm's length unrelated
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.
CENVAT is payable by the manufacturer
but is, ordinarily, recovered from the buyer as a part of consideration for
sale of goods. To reduce the cascading effect of CENVAT, a scheme known as
MODVAT was introduced in 1986, which has now been renamed as CENVAT
(effective 1 April, 2000). Under the CENVAT Scheme, a manufacturer can avail
of the credit of the central excise duties or additional duties of customs
(i.e. CVD) paid on specified inputs and capital goods used in the
manufacture of excisable goods and also service tax paid on eligible input
services and utilize it in discharging central excise duty on finished