Dear experts,
One of my clients who exported the capital goods after usage of 10 years in their factory, exported the same to other country and value quoted 100 times morethan the book value(wdv). What is the pros and cons. Now he got the notice from the customs department for the reasons for the value quoted higher than the book value.
Can anyone suggest me on this.
Thanks in advance.
Client Faces Customs Inquiry Over Export Valuation Discrepancy; Potential FEMA Issues Highlighted A client exported capital goods valued at 100 times their book value after 10 years of use, prompting a customs inquiry. An expert explains that while over-valuation can increase foreign exchange and export benefits, it may also lead to inadmissible duty drawbacks and potential legal issues. Although the goods cannot be confiscated post-export, the customs department may challenge the valuation, and the burden of proof lies with them. The expert advises caution, warning that over-valuation could lead to complications under the Foreign Exchange Management Act (FEMA) despite approvals from GST and customs officers. (AI Summary)
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