CA Final · Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) · Indirect Tax Laws
Case: Meenakshi Textiles Ltd imports fabric. The BCD is 10% on assessable value of Rs 50,00,000. Social Welfare Surcharge (SWS) applies at 10% of BCD. IGST is 12% under the Customs Tariff Act, section 3(7). Ignoring other duties, what is the IGST payable?
IGST is Rs 6,66,000. It is charged at 12% on assessable value plus BCD plus Social Welfare Surcharge, that is on Rs 55,50,000.
- ARs 6,00,000
- BRs 6,60,000
- CRs 6,66,000
- DRs 6,72,000Correct
Explanation
BCD = 5,00,000. SWS = 10% of BCD = 50,000. Value for IGST = 50,00,000 + 5,00,000 + 50,000 = 55,50,000. IGST at 12% = 6,66,000. Hence the correct figure is 6,66,000 and option index 2 holds it.
Did you get it right without looking?
One question tells you little. A timed set on Indirect Tax Laws shows your real accuracy, how long you take and where you lose marks.
More Indirect Tax Laws questions
- Case: Kaveri Precision Tools Ltd, Pune, imported goods and the customs officer doubts the declared transaction value because the importer an…
- Case: Kaveri Precision Tools Ltd, Pune, imports a CNC machine from Germany. The goods arrive at Nhava Sheva and the bill of entry is present…
- Case: Kaveri Precision Tools Ltd, Pune, imports a CNC machine from Germany. Invoice price is EUR 50,000 (FOB). Exchange rate notified by CBI…
- Case: Meenakshi Textiles Pvt Ltd imports fabric from Vietnam. Its Indian agent Ravi charges a buying commission of ₹1,50,000 on a transactio…
- Case: Kaveri Precision Tools Ltd imports components with assessable value Rs 10,00,000. Basic customs duty (BCD) is 10%. Social Welfare Surc…
- Case: Kaveri Precision Tools Ltd, Pune, imports CNC machine parts from Germany. The goods arrive at Nhava Sheva on 12 June. The importer fil…