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

Mehta Textiles presents a bill of entry for home consumption on 10 March. The goods arrive and the vessel makes entry inwards on 14 March. The rate of duty was 10% until 12 March and 15% from 13 March. Under Section 15, which rate applies, assuming duty is not paid before the vessel's entry inwards?

The 15% rate applies. A bill of entry presented before the vessel's entry inwards is deemed presented on the date of entry inwards, 14 March, and the rate in force then is 15%. The 10% rate on the actual presentation date is overridden by the proviso to Section 15(1).

  1. A10%, the rate on the date the bill of entry was presented
  2. B15%, because the bill of entry is deemed presented on 14 March, the date of entry inwardsCorrect
  3. C10%, the rate on the date of the order for clearance
  4. D15%, the rate on the date duty is paid in all cases

Explanation

Under Section 15(1)(a) the rate is that on the date the bill of entry is presented. The proviso deems a bill of entry presented before the vessel's entry inwards to be presented on the date of entry inwards, 14 March, when the rate is 15%. Option A ignores the proviso.

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