Skip to content

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

Which statement is correct about the Board's power to fix tariff values under Section 14(2) of the Customs Act, 1962?

The Board may notify tariff values for any class of imported or export goods, considering the trend of value of such or like goods, and duty is then charged on that tariff value instead of transaction value. This power rests with the Board, not the proper officer or importer.

  1. AThe Board may fix tariff values by notification for any class of imported or export goods, having regard to the trend of value of such or like goods, and duty is then chargeable on the tariff valueCorrect
  2. BThe Board may fix tariff values only for imported goods, and never for export goods
  3. CThe Board may fix tariff values only with prior approval of the importer, and duty is then chargeable on transaction value
  4. DTariff values are fixed by the proper officer for each bill of entry based on the invoice price

Explanation

Section 14(2) permits the Board, if satisfied it is necessary or expedient, to notify tariff values for any class of imported or export goods, having regard to the trend of value of such or like goods. Duty is then chargeable on that tariff value, overriding transaction value under sub-section (1). It covers both imports and exports.

Did you get it right without looking?

One question tells you little. A timed set on Valuation under the Customs Act, 1962 shows your real accuracy, how long you take and where you lose marks.

Practise Valuation under the Customs Act, 1962Free diagnostic mock

More Valuation under the Customs Act, 1962 questions