Customs duty

India specifics

Customs duty is an indirect tax that is charged on goods that are imported into India. Typically, the duty is payable at the port of entry. The duty rate varies according to the nature of the items. Customs duty is a tariff or tax that is imposed on specific commodities and financial transactions, rather than on individuals. Typically, goods that are purchased from abroad. Customs duty is administered centrally. The valuation method is Cost, Insurance, and Freight (CIF). CIF is the calculation of import duty and taxes payable that is calculated on the full shipping value. Customs duty includes landing charges. The rates of duty may be ad valorem, a % of value, or a specific value per unit. Typically, the average rate is 12%, but some goods are exempt. A 10-digit Import Export code (IEC) is required.

The rate of duty depends on the classification of goods, as determined by the Harmonized System Number (HSN). The tax point is the date of filing the bill of entry, and the calculation threshold is 1 INR.

How Infor meets the requirement

See the Financials Setup and Administration Guide for information about add on charges.