In the budget, the Finance Minister has announced to increase the duty on some things and reduce it on some. The government has reduced the custom duty on steel products to 7.5%. This will make steel goods cheaper than before.
There have been a lot of changes in the custom duty in the budget, after which custom duty is very much discussed. Actually, the change in customs duty also changes the price of goods imported from abroad. The government has made several announcements regarding this in the budget, which will now have a direct impact on the pockets of the people. In such a situation, you know what changes the government has made. Also, you know the full mathematics of custom duty, so that you will know how much the rate of goods increases due to this.
In the budget presented on Monday, the Finance Minister has announced to increase the duty on some things and reduce it on some. The government has reduced the custom duty on steel products to 7.5%. This will make steel goods cheaper than before. Similarly, the government has increased the duty on solar inverter to 20 percent. This will make the inverter expensive. Custom duty on steel products has been reduced to 7.5% in the budget. Custom duty on mobile devices has been increased to 2.5 percent. Custom duty on gold and silver has been reduced, so that both metals will now become cheaper.
What is custom duty?
If we talk about custom duty then it is a kind of tax, which is levied on goods which are imported or exported. When a goods arrives in India from abroad, many types of charges are levied on it. Custom duty is used by countries to increase their revenue. Its rate varies according to each item. In such a situation, import duty is divided into basic duty, additional custom duty, actual counterpricing duty, protective duty, education cess and security duty.
How much does the cost of goods affect?
If any goods are coming from abroad, then the cost of custom duty increases considerably. In addition to the basic custom duty rate, many other types of charges are also imposed, which increases the price of goods. In addition to basic custom duty, charges like AIDC, Cess, Social Welfare Surcharge, IGST are levied, this increases the rate of goods from abroad.
How much tax do you think?
By the way, according to every item it is calculated differently. Legal Advisor and CA Bhavin Mehta explained it simply by the example of gold. In fact, in the budget, the custom duty of gold has been reduced from 12.87 percent to 10.75 percent. In such a situation, if you bring gold of 1 lakh rupees from abroad, then it takes basic custom at the rate of 7.5 percent, which will be 7500 rupees. After this AIDC will be charged which is 2.5 per cent and that will be 2500 rupees.
After this, 10% of the custom duty has to be given as social welfare surcharge, that is, 750 rupees. In this case, its total cost will be Rs 110750, which is 10.75. At the same time, after this IGST has to be paid on it and it will have to be given according to 3 percent, which will be Rs 3323. In such a situation, the total cost of Rs 1 lakh will be Rs 114073. Simply put, you have to pay 14073 rupees extra.
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