Sunflower Ltd., imported a machine from USA by air for its factory in Silvasa. The FOB value of the machine is $ 20,000. Other expenses incurred were as follows :
i. Freight from USA to India $ 4,500.
ii. Insurance premium is not shown/available in the invoice.
iii. Transportation charges from “Indian airport” to “Silvasa factory” is Rs. 12,500.
Basic customs duty 20%; Additional Customs duty u/s 3(1) 16%; Education cess 2% and Secondary and Higher Education cess 1%.
Compute : Assessable value and Customs duty payable; asuming an Exchange Rate of $1 = Rs. 48.
CAclubindia
