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

Hind Textiles Ltd filed a bill of entry for home consumption under section 46 on 10 March for goods imported by sea. The vessel's entry inwards was on 15 March. The duty rate was 10% till 12 March and 15% from 13 March; duty was paid on 20 March. As per section 15, the applicable rate is:

The rate is 15%. A bill of entry presented before the vessel's entry inwards is deemed presented on the date of entry inwards under the proviso to section 15(1). That deemed date, 15 March, falls after the rate rose to 15%.

  1. A10%, because the bill was presented on 10 March
  2. B15%, because the vessel's entry inwards was on 15 MarchCorrect
  3. C15%, because duty was paid on 20 March
  4. D10%, because the rate changed only after the bill was filed

Explanation

Under section 15(1)(a) the rate is that on the bill of entry presentation date. The proviso deems a bill presented before the date of entry inwards of the vessel to have been presented on that entry inwards date, here 15 March, when the rate is 15%. Choosing 10% ignores the proviso, and the payment date is not relevant for goods entered for home consumption.

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