Example: Imports
This functionality is specific for India.
Example
The following example shows the various taxes levied, when
customs duty is applicable on the transaction.
The purchase price of an item is INR 58000. The assessable
value of the item is INR 60000. The taxes applicable on the transaction are as
follows:
- Basic Customs Duty (BCD) is 12.5% on assessable
value.
- Countervailing Duty (CVD) is 16% on assessable value and
BCD.
- Education Cess (Ecess) on CVD is 2% on CVD.
- Secondary and Higher Education Cess (SHEcess) on CVD is 1% on
CVD.
- Education Cess on Customs is 2% on the sum of BCD.
- Secondary and Higher Education Cess on Customs is 1% on the sum
of BCD.
- Additional duty of Customs is 4% on assessable value + all the
above duties.
The above tax structure is represented in the Aggregate Taxes (tctax9141m00l) session as follows:
The calculation of total tax for the above aggregate tax
structure is as follows:
| Layer | The amount or tax represented by the layer | Tax |
|---|
| 1 | 100 per cent of
60000 = 60000 | |
| 2 | 12.5 per cent of 60000 | 7500.00 |
| 3 | 16 per cent of
(60000) | 9600.00 |
| 4 | 2 per cent of 9600 | 192.00 |
| 5 | 1 per cent of
9600 | 96.00 |
| 6 | 2
per cent of 7500 | 150.00 |
| 7 | 1 per cent of 7500 | 75.00 |
| 8 | 4 per cent of
(60000 + 7500 + 9600 + 192 + 96 + 150 + 75) | 3104.52 |
| Total tax | 20717.52 |
The total tax is INR 20717.52.
![[...]](../images/tr_screen_tctax0140m000_imports.jpg)