merit rate of duty

[rajkumar shukla]

What is merit rate of duty which finds mention in TRU D.O.letter relating to excise `budget proposals?Has this been defined any where?

[ALOK GUPTA]

Please intimate the specific place where term "" Merit rate  " is mentioned in Budget  proposals

[rajkumar shukla]

please see para 3.4 of  DO of J.S TRU-1  wherein this reference is available.

[Vijay kumar]

Dear Sir, merit rate means the effective rate of duty applicable for the goods in question. This has not been defined in the Tariff Act or the notifications, but is generally used to indicate the applicable rate of duty. Presently, the tariff rate is 16% and the merit rate is 12% for most of the goods. If we see the exemption notifications eg. 18/2012 or 12/2012 CE, they exempt the goods over and above the rate specified therein and the word "merit rate" or "effective rate" is not used specifically. Hence these words are for common understanding only.

AI Summary

Clarification on 'Merit Rate of Duty' in Excise Budget: Tariff Rate 16%, Merit Rate 12% for Most Goods. A query was raised about the term 'merit rate of duty' mentioned in a TRU D.O. letter related to excise budget proposals. One participant asked for the specific location of this term in the budget proposals, and another directed them to a particular paragraph in the document. It was explained that 'merit rate' refers to the effective rate of duty applicable to goods, which is not explicitly defined in the Tariff Act or notifications. Currently, the tariff rate is 16%, while the merit rate is 12% for most goods, with exemption notifications providing clarity on applicable rates.