Mrs. Hotilal, an Indian resident (36 years old) who was on a visit to China, returned after 6 months. She was carrying with her the following items:…
CA Final · Indirect Tax Laws · MTP · September 2025
Mrs. Hotilal, an Indian resident (36 years old) who was on a visit to China, returned after 6 months. She was carrying with her the following items: ₹ (i) Personal effects 75,000 (ii) Laptop computer 60,000 (iii) Jewellery - 25 grams (purchased in China) 75,000 (iv) Music system 50,000 Compute the customs duty payable by Mrs. Hotilal with reference to the Baggage Rules, 2016. Ignore Agriculture infrastructure and development cess.
Suggested Answer and Working Notes:
Computation of customs duty payable by Mrs. Hotilal Particulars ₹ Personal effects [Duty free clearance is allowed] Nil Laptop computer [One laptop computer is exempt when imported into India by a passenger ≥ 18 years of age] Nil Jewellery [Duty free jewellery allowance is not available to Mrs. X since she did not reside abroad for more than 1 year] 75,000 Music system 50,000 Total value 1,25,000 Less: General duty free baggage allowance of 50,000 50,000 Value of baggage liable to customs duty 75,000 Rate of Duty 38.50% Customs duty @ 38.50% (including social welfare surcharge) 28,875
Topics: Customs: Valuation under the Customs Act, 1962
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