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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2013 ABC Italy and ABC India are related parties. ABC Italy is supplying axles to ABC India and ABC India in turn makes high sea sale of these axles to TAFE India, an unrelated party. Subsequently at end of the year, ABC India is paying price increase as part of transfer price adjustment to ABC Italy for the supplies made by them during the accounting year. Comment on impact of the same on the customs duty liability on the import transaction involved in above.

Please provide the answer with complete provisions.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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12 October 2013 the customs duty is chargeable on genuine transaction value.

http://www.cbec.gov.in/customs/cs-circulars/cs-circulars10/circ11-2k10-cus.htm