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Custom duty

riddhi (student) (746 Points)

20 June 2016

We had ordered plastic molds from China and we are charged excise duty + additional 4% CVD. There was no manufacturing then why excise duty+ why CVD is charged?

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2 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 20 June 2016

CVD: Any article imported into India is liable to CVD (in addition to BCD) equal to excise duty for the time being leviable on a like article if produced/manufactured (could be or capable of being produced/manufactured) in India.
SAD: It is leviable @ 4% in addition to basic customs duty and CVD.
Hence I assume, CVD and SAD has been levied in your case