CMA Final · Indirect Tax Laws and Practice · Duty Drawback
Under the Customs Act, 1962, goods capable of being easily identified were imported on payment of duty and are later entered for export. What share of the import duty is repaid as drawback, provided the other conditions of the section are met?
Ninety-eight per cent of the import duty paid is repaid as drawback under section 74(1), provided the goods are easily identifiable, are identified to the officer's satisfaction as the imported goods, and are entered for export within the prescribed period.
- ANinety-eight per cent of the dutyCorrect
- BOne hundred per cent of the duty
- CNinety per cent of the duty
- DFifty per cent of the duty
Explanation
Section 74(1) provides that ninety-eight per cent of the duty paid on importation is repaid as drawback, subject to identification and time conditions. One hundred per cent would ignore the statutory retention of two per cent. Ninety and fifty per cent are not the figures given in the section.
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