CA Final · Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) · Indirect Tax Laws
Case: Kaveri Precision Tools Ltd imports components with assessable value Rs 10,00,000. Basic customs duty (BCD) is 10%. Social Welfare Surcharge is 10% of BCD. IGST is 18% on the value plus BCD plus SWS. What is the total IGST payable at import?
IGST is computed on assessable value plus BCD plus Social Welfare Surcharge. The base is Rs 11,10,000 and IGST at 18% is Rs 1,99,800.
- ARs 2,07,900Correct
- BRs 1,80,000
- CRs 2,00,000
- DRs 2,19,780
Explanation
BCD = 1,00,000. SWS = 10% of 1,00,000 = 10,000. Base for IGST = 10,00,000 + 1,00,000 + 10,000 = 11,10,000. IGST at 18% = 1,99,800. Recheck: 11,10,000 x 0.18 = 1,99,800. So the correct figure is 1,99,800, which is not among the options as listed.
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