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

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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.

AI Summary

Customs Valuation Dispute: Importer's Actual Purchase Price Confirmed as Rs.1,60,000, Sales Tax Authority Accepts Invoice and Duty A client imports goods from China with an invoice value of Rs.1,00,000. However, the Customs Department values the goods at Rs.2,00,000 and imposes a 30% duty, totaling Rs.60,000. The question raised is whether the purchase price should be considered Rs.1,60,000 or Rs.2,60,000 and if the Sales Tax Authority can dispute the sale price based on customs valuation. The response clarifies that the purchase price is Rs.1,60,000, as it reflects the actual payment made by the importer. The Sales Tax Authority accepts the invoice price and the customs duty paid.