Mr. Oliver of foreign origin has come on travel visa, to tour in India. He carries with him, as part of baggage, the following: Particulars Value in…

CA Final · Indirect Tax Laws · MTP · May 2024
Mr. Oliver of foreign origin has come on travel visa, to tour in India. He carries with him, as part of baggage, the following: Particulars Value in ₹ Travel Souvenir 85,000 Other articles carried on in person 1,50,000 120 sticks of cigarettes of 100 each 12,000 Fire arm with 100 cartridges (value includes the value of cartridges at @500 per cartridge). 1,00,000 Determine customs duty payable, if the effective rate of customs duty is 38.50% inclusive of social welfare surcharge, with short explanations where required. Ignore Agriculture infrastructure and development cess.

Suggested Answer and Working Notes:

As per Baggage Rules, 2016, tourist of foreign origin, excluding infant, is allowed duty free clearance of (i) travel souvenirs; and (ii) Articles up to the value of 15,000 (excluding inter alia fire arms, cartridges of fire arms exceeding 50 and cigarettes exceeding 100 sticks), if carried on in person. Computation of customs duty payable Particulars ₹ Travel souvenir Nil Articles carried on in person 1,50,000 Cigarettes [100 sticks can be accommodated in General Free Allowance (GFA)] 10,000 Fire arms cartridge (50 cartridges can be accommodated in GFA) 25,000 Baggage than can be accommodated in GFA 1,85,000 Less: GFA 15,000 Baggage on which duty is payable 1,70,000 Duty payable @ 38.50% (including 10% Social welfare surcharge) 65,450 Note: Fire arms, cartridges of firearms exceeding 50 and cigarettes exceeding 100 sticks are not chargeable to rate applicable to baggage. These items are charged @ 100% applicable to baggage under Heading 9803 of the Customs Tariff.

Topics: Customs: Importation and Exportation of Goods

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