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

Under Section 14 of the Customs Act, 1962, the transaction value of imported goods is the price actually paid or payable for goods sold for export to India for delivery at a particular time and place. Which description of that time and place is correct?

The transaction value of imported goods is the price actually paid or payable for goods sold for export to India for delivery at the time and place of importation. The place of exportation applies only to export goods, so it is the wrong reference for imports.

  1. ADelivery at the time and place of importationCorrect
  2. BDelivery at the time and place of exportation from the supplier's country
  3. CDelivery at the buyer's factory in India
  4. DDelivery at the time of payment of duty at the port of clearance

Explanation

Section 14(1) defines transaction value as the price actually paid or payable when sold for export to India for delivery at the time and place of importation. Exportation is the reference only for export goods. Delivery at the buyer's factory is not the statutory reference point.

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