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

Arjun, an individual, imports a gadget through an authorised courier. The courier presents the list of goods particulars to the proper officer on 5 August, when the tariff value is Rs 40,000. On 9 August the tariff value is raised to Rs 50,000, and Arjun pays duty on 12 August. Which tariff value is applicable?

Rs 40,000 applies. For goods imported by courier, the tariff value is the one in force on the date the authorised courier presents the list of particulars to the proper officer, which is 5 August, not the later payment date.

  1. ARs 50,000, the value on the date of payment of duty
  2. BRs 40,000, the value on the date the courier presents the list to the proper officerCorrect
  3. CRs 50,000, the value on the date of the assessment order
  4. DRs 40,000, the value on the date Arjun placed the order abroad

Explanation

For goods imported by post or courier, the rate and tariff value are those in force on the date the authorised courier presents to the proper officer a list of particulars for assessing duty. That date is 5 August, so Rs 40,000 applies. Payment date is irrelevant here.

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