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CA Final · Indirect Tax Laws · Valuation under the Customs Act, 1962

Mehta Gifts imported goods by courier. The authorised courier presented the list of goods to the proper officer on 5 March. The goods arrived in India on 28 February. The duty rate was 20% up to 3 March and 25% from 4 March. Under section 83, which rate applies?

The rate is 25%. For goods imported by courier, the rate in force is that on the date the authorised courier presents the list of goods to the proper officer, here 5 March, not the arrival date.

  1. A20%, the rate on the date of arrival of the goods
  2. B25%, the rate on the date the authorised courier presents the list of goods to the proper officerCorrect
  3. C20%, the rate on the date of the order placed
  4. D25%, the rate on the date the importer receives the goods

Explanation

Section 83(1) fixes the rate and valuation in force on the date the authorised courier presents to the proper officer a list containing the particulars of the goods. This date is 5 March, when the rate is 25%. The proviso on prior presentation applies only to goods imported by a vessel.

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