IF BCD paid thru licence

[Mridul Sethi]

Sir,

If we pay BCD thru licence, then AED is to be calculated on landed cost or on (landed cost + custom duty) figure. Actually we are receiving BOE ot this case with the calculation of AED on landed cost, but my query is that in this way are we not paying less amount to the govt.

Regards,

Mridul Sethi

AI Summary

Calculation of AED: exclude licence exempt basic customs duty from the AED base; licence debits record exemptions.
AED is imposed on landed cost plus customs duty when that duty is actually leviable. If basic customs duty is exempted through a licence, the exempted amount is not included in the base for calculating AED; the licence debit is an administrative record of exemption rather than payment. Licence debits likewise track any exemption of AED itself where applicable.