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CMA Final · Indirect Tax Laws and Practice · Valuation and Related Party Transactions

Dhanush Exports Ltd delivers a consignment of goods to an authorised courier for export on 5 June. The courier carries it abroad; the exporter had no shipping bill under section 50. Tariff valuation for the goods was revised on 8 June. As per Section 83 of the Customs Act, 1962, the rate of duty and tariff value applicable are those in force on:

The rate and tariff value in force on 5 June apply, because Section 83(2) fixes them as of the date the exporter delivers the goods to the authorised courier for exportation. The date of presentation of the list and the duty payment date are relevant only to imports or other cases.

  1. A8 June, the date the courier presents particulars to the proper officer
  2. BThe date on which the goods reach the overseas consignee
  3. C5 June, the date on which the exporter delivers the goods to the authorised courierCorrect
  4. DThe date of payment of duty by the exporter

Explanation

Section 83(2) states that for goods exported by post or courier, the rate of duty and tariff value are those in force on the date the exporter delivers the goods to the authorised courier. That is 5 June. The list presentation date applies to imports under Section 83(1).

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