Basic question of custom
This query is : Resolved
15 September 2011
dear reader, i am confused about the basic of nature of customs' tax. Books says it is indirect in nature, but after reading i found that we are hereby not shifting the tax burden, as that we do in case of indirect tax like exise or vat. So please help me that, how can we justify saying customs' tax an indirect one?
15 September 2011
Custom duty is Indirect Tax.
Dealer in imported cars-First dealer pays custom duty on cars and collects from the buyer.
The incidence of tax is not directly on the buyer that means buyer will not pay custom duty to customs department, hence it is called Indirect Tax.
Whereas Income Tax is direct tax, since assessee pays tax directly to the Income Tax Department.
Dealer in imported cars-First dealer pays custom duty on cars and collects from the buyer.
The incidence of tax is not directly on the buyer that means buyer will not pay custom duty to customs department, hence it is called Indirect Tax.
Whereas Income Tax is direct tax, since assessee pays tax directly to the Income Tax Department.
16 September 2011
sir thanks..but please clarify me more..that..like in excise duty we seperately show the amount of duty in invoice..but if we see in custom duty we are not showing it seperately in invoice..so how can we say that the amount so collected from buyer is of custom duty..if i am wrong somewhere..then please clarify me..thanks
28 November 2011
Customs duty is an indirect tax which is realized on goods of international trade. It is also a kind of consumption tax. Duties levied by the government in relation to imported items is referred to as import duty. In the same way, duties realized on export consignments is called export duty.
Customs duty is imposed on import and export of goods the burden of which is shifted on to the consumer. As and when the goods cross the customs barrier they become the mass of the country and are then locally sold as if the goods are procured or produced in the country itself. This is the reason why customs duty is not seperately shown in the invoice.The amount of the duty is included in the cost of the goods and then they are sold after adding other costs of production or alterations and profits.
Customs duty is imposed on import and export of goods the burden of which is shifted on to the consumer. As and when the goods cross the customs barrier they become the mass of the country and are then locally sold as if the goods are procured or produced in the country itself. This is the reason why customs duty is not seperately shown in the invoice.The amount of the duty is included in the cost of the goods and then they are sold after adding other costs of production or alterations and profits.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
