| | Custom Duty- OverviewThis functionality is specific for India. The Central board of excise and customs and
central government regulate the custom duties. The objectives of the custom duties are the
following: - Raise revenue for the central government.
- Regulate imports and exports.
- Protect Indian industries from foreign products.
Kinds of custom duties The kinds of custom duties are the following : Basic custom duty This duty is levied on all taxable goods. The rate differs for
each item. Generally, the rate on non-agricultural goods is 12.5 per
cent. Countervailing duty or additional customs duty
(CVD) This duty is levied on goods of special importance. The rate is
16.32 per cent inclusive of educational cess(2 per cent). Education cess This duty is calculated on all the taxes, to generate revenues
for the basic education. The rate is 2 per cent.
Heavy custom duty This duty is levied on machinery imported for projects.
Concessions are made on the basic custom duty, based on the project type . The tax percentages levied on various projects are the
following: - For project imports, the rate is 12.5 per cent.
- For fertilizers, coal mining and power generation projects the
rate is 5 per cent.
Note Taxes are not levied on the industrial and agricultural based
mega power projects and water supply projects . | |