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CA Final · Indirect Tax Laws · Valuation under the Customs Act, 1962

Anand, a resident of Mumbai, arrives from Dubai with baggage. He makes a declaration under section 77 on 3 July. The duty rate on an item in his baggage was changed on 5 July, and he paid duty on 6 July. Under the Customs Act, 1962, which rate and tariff valuation apply to the baggage?

The rate and tariff valuation in force on 3 July apply. Section 78 states that for baggage the relevant date is the date on which the declaration is made under section 77, and the general import date rules in section 15 do not apply to baggage.

  1. AThose in force on 3 July, the date of declaration under section 77Correct
  2. BThose in force on 5 July, the date of change
  3. CThose in force on 6 July, the date of payment of duty
  4. DThose in force on the date the aircraft arrived, irrespective of declaration

Explanation

Section 78 provides that the rate and tariff valuation for baggage are those in force on the date a declaration is made under section 77. Section 15(2) excludes baggage from the general import date rule. The payment date of 6 July is therefore irrelevant.

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