Hello, Reader welcome to the fresh article of “IndianCustoms.Info”. Here in this article, I’m going to explain How to calculate Assessable value, IGST Value, and customs duty.
I have referred lots of sites to know the calculation of assessable value (AV).
At that time, I came to know that all the sites providing an old method of AV calculation.
No one still updates the new method of calculation.
So, I decided to explain the new method of AV calculation.
Keep reading the complete article, If you want to know the complete calculation process.
How To Calculate Assessable Value?
To calculate the AV, You need to calculate the CIF value.
As per Circular 39/2017-Customs, The CIF value and Assessable value are the same.
CIF (Cost, Insurance, Freight) value is the total value of “Invoice value + Insurance + Freight + Ex-work charges (If any)”.
- Invoice Value = Rs.1000/-
- Insurance Value = Rs. 11.25/-
- Freight Value = Rs.200/-
Rs.1000 (Invoice Value) + Rs. 11.25 (Insurance Value) + Rs.200 (Freight Value) = Rs.1211.25/- (CIF value)
CIF value = Rs.1211.25/- (Assessable Value)
Note:- The above calculation is for FOB & Ex-Work shipments.
How To Calculate Customs Duty & IGST Value
Customs duty is calculated on the basis of assessable value. I will explain the complete calculation process.
If BCD (Basic Duty) is 10%, SWS (Social welfare surcharge) is 10%, and IGST is 18%
BCD:- Rs.1211.25/- (AV) x 10% = RS.121.125/- (Basic Duty)
SWS:- Rs.121.125 (Basic Duty) x 10% = Rs.12.1125/- (Social welfare surcharge)
IGST:- [Rs.1211.25 (AV) + Rs.121.125 (BCD) + Rs.12.1125/- (SWS)] x 18% = Rs.242.00775/- (IGST Amount)
Total Customs duty (Excluding IGST amount) = Rs.133.2375/-
Total Customs duty (Including IGST amount) = Rs.375.24525/-
IGST value Calculation :- Rs.1211.25 (AV) + Rs.121.125 (BCD) + Rs.12.1125/- (SWS) = Rs.1344.4875/- (IGST Value)
“I hope now you understand the new method of AV calculation for import customs duty in India. Comment below if anyone has any suggestions or query regarding the Assessable Value, IGST Value, and Customs duty calculation.”