Due date for VAT returns: electronic filing deadlines differ by turnover, and filing must align with payment deadlines.
The 2009 amendment introduced electronic filing deadlines: earlier deadlines for high turnover electronic payers and a later unified deadline for other electronic filers, while the original non electronic deadlines remain in force. The rule language expressly requires filing "on or before 22nd of the succeeding month along with proof of payment," indicating that filing and remittance dates are the same for those covered by that provision. Administrative clarification is advisable to resolve conflicting guidance from customer service. (AI Summary)

Valuation of second-hand machinery requires CE inspection certificate and inclusion of all pre-import costs in assessable value.
Assessable value of imported second hand machinery is the price paid or payable by the buyer and includes all costs up to the Indian port-repairs, refurbishment, modernization, crating, dismantling and pre shipment inspection. Imports must be accompanied by an Inspection/Appraisement report (Overseas CE Form A or Form B from a DGFT empanelled or Customs empanelled agency). The CE report and prescribed workings are compared with the declared value; significant discrepancies prompt a written query under Rule 12 CVR 2007, and valuation is determined under Rules 3-9 as applicable. (AI Summary)

Royalties in customs valuation: post importation manufacturing royalties are not includible in transaction value under valuation rules.
The article explains that Rule 10(1)(c) of the Customs Valuation Rules requires adding royalties and license fees to transaction value only where they are a condition of the sale of the goods being valued, while interpretative notes exclude royalties for reproduction in the importing country and payments tied to post import manufacture or resale. Tribunal decisions consistently hold such post import royalties are unrelated to imported components and not addable. An "Explanation" to clauses (c) and (e) creates conflict by treating certain post import payments as includible; the authors argue the Explanation is inconsistent with the Rule and notes and should be deleted or subordinated. (AI Summary)

Arm's Length Principle harmonisation needed to align customs valuation and transfer pricing determinations across tax statutes.
Convergence is necessary because transfer pricing and customs valuation both seek to prevent revenue loss from related party international transactions, but differ in mandate: transfer pricing addresses potential over valuation for income tax, while customs valuation targets under valuation for customs duty. Demonstration of conformity with the Arm's Length Principle should resolve valuation conflicts, yet divergent statutory rules, methods (CUP/TVI/TVS, Resale Price/Deductive Value, Cost Plus/Computed Value), evidentiary standards and treatment of intangibles produce inconsistent outcomes and duplicate taxpayer burdens; administrative coordination and clearer rules could enable harmonisation. (AI Summary)