My client imports goods from China. The Invoice value say is Rs.1,00,000/-.The Custom dept values th

[Asked by Guest]

My client imports goods from China. The Invoice value say is Rs.1,00,000/-.The Custom dept values the goods at Rs.2,00,000/- and imposes duty of 30% which amounts to Rs.60,000/- Now what is the purchase price for the goods. Is it Rs.1,60,000/- or Rs.2,60,000/-.Whether Sales Tax Authority can dispute the sale price based on custom valaution and reject the books of accounts stating that the sales are undervalued.

The purchase price for the goods is Rs.1,60,000 because this is the amount actually paid by the importer for the good. Sales tax authority accepted the price of invoice and the custom duty which he paid on it

AI Summary

Customs valuation does not automatically change purchase price; invoice plus duty actually paid governs sales tax treatment.
The operative purchase price for the importer is the invoice value plus the duty actually paid; a higher customs valuation and duty assessed by customs does not per se change the purchaser's recorded purchase price or obligate the sales tax authority to reject books absent separate grounds.