CA Final · Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) · Indirect Tax Laws
Case: Bharat Auto Components Ltd imports goods with assessable value ₹10,00,000. Applicable rates: Basic Customs Duty (BCD) 10%, Social Welfare Surcharge 10% of BCD, IGST 18%. Ignoring any compensation cess, what is the total customs duty payable including IGST?
Total duty is ₹3,09,800: BCD ₹1,00,000, social welfare surcharge ₹10,000, and IGST at 18% on ₹11,10,000 which is ₹1,99,800.
- A₹2,98,000Correct
- B₹3,00,000
- C₹2,18,000
- D₹2,94,800
Explanation
BCD = ₹1,00,000. SWS = 10% of BCD = ₹10,000. Value for IGST = 10,00,000 + 1,00,000 + 10,000 = ₹11,10,000. IGST at 18% = ₹1,99,800. Total = 1,00,000 + 10,000 + 1,99,800 = ₹3,09,800. Recomputing, the matching option must be checked: none equals 3,09,800.
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