No service tax on canned software ,if seller is not charging more than M.R.P from end customer as per Notification No. 53/2010 - Service Tax

No service tax on canned software ,if seller is not charging more than M.R.P. It is to avoid double taxation as software as service and as product, one time it is service tax  and another time is central excise .

Notification is reproduced for easy reference.

 Notification No. 53/2010 - Service Tax

                                                                                                             New Delhi, the 21 st December,2010 

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SECTION (i)]
Government of India
Ministry of Finance
Department of Revenue
                                                                                                    
 G.S.R.  (E).- In exercise of the powers conferred  by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the
public interest so to do, hereby exempts  the taxable service referred to in item (v) of sub-clause
(zzzze) of clause (105) of section 65 of the said Finance Act (hereinafter referred to as ‘such service’),
for packaged or canned software (hereinafter referred to as ‘said goods’) from the whole of service
tax, subject to the condition that-
(i) the value of the said goods domestically produced or imported, for the purposes of levy of the duty
of Central Excise or the additional duty of customs leviable under sub-section (1) of section 3 of the
Customs Tariff Act, 1975 (51 of 1975), if imported, as the case may be, has been determined under
section 4A of the Central Excise Act 1944 (1 of 1944) (hereinafter referred to as ‘such value’); and
(ii) (a) the appropriate duties of excise on such value have been paid by the manufacturer, duplicator
or the person holding the copyright to such software, as the case may be, in respect of software
manufactured in India; or
(b) the appropriate duties of customs including the additional duty of customs on such value, have
been paid by the importer in respect of software which has been imported into India;
(iii) a declaration made by the service provider on the invoice relating to such service that no amount
in excess of the retail sale price declared on the said goods has been recovered from the customer.
Explanations.- For the purpose of this notification, the expression,-
(i) “appropriate duties of excise” shall mean the duties of excise leviable under section 3 of the Central
Excise Act, 1944 (1 of 1944) and a notification, for the time being in force, issued in accordance with
the provision of sub-section (1) of section 5A of the said Central Excise Act; and
(ii) “appropriate duties of customs” shall mean the duties of customs leviable under section 12 of the
Customs Act, 1962 (52 of 1962) and any of the provisions of the Customs Tariff Act, 1975 (51 of
1975) and a notification, for the time being in force, issued in accordance with the provision of subsection (1) of section 25 of the said Customs Act.
                                                                                               [F. No. 354/189/2010-TRU]
                                                                                          (VIKAS)
Under Secretary to the Government of India




Ravindra Kumar

Customs duty on HP iPAQ mobile messenger is 1.03 %.

Customs classification of HP iPAQ mobile messenger is under heading CTH 85171290  and rate of duty  is @ 1.03%, if  it looks more like smartphone. However,  If it is considered handheld device than CTH 8471 and duty @ 14.71%.  Correct classification will depend upon what is  principal function of a particular items.
Regards
Ravindra Kumar
Global Tax Guru
www.globaltaxguru.in

Customs duty on VC6096 WWAN In-Vehicle/Fixed Mount Mobile Computer is 1.03%

 Tariff classification of Motorala  under CTH  85171290 and  rate of duty is 1.03 %.
The VC609VC6096 WWAN In-Vehicle/Fixed Mount Mobile Computer6 all-in-one in-cab solution is designed to help transportation and logistics providers achieve cost-effective compliance, maximize driver productivity, improve safety and vehicle utilization, reduce costs and improve customer service.

Customs duty on HTC EVO 4G,Google Nexus One,Samsung Vibrant, HTC Desire,HTC Incredible,Motorola Droid X,Samsung Epic 4G,

Rate of customs duty on a rear view mirror hands-free Bluetooth car kit

The tariff classification of a rear view mirror hands-free Bluetooth car kit  is CTH 85176970. Rate of duty is 15.03%.

Second hand personal goods should not require import licence

As per Foreign Trade Policy, second hand capital goods are allowed to be imported without any licence. But  second goods for personal use seems to be restricted. This view is not appears to be correct.

"......Provided that where it is established to the satisfaction of the Adjudicating Authority that any goods or materials which are liable to confiscation under this rule, had been imported for personal use, and not for any trade or industry, such goods or materials shall not be ordered to be confiscated........"   Rule 17. Confiscation and redemption..FOREIGN TRADE (REGULATION) RULES, 1993 Ministry of Commerce Notification No. GSR 791 (E), dated 30-12-1993.




It is interpreted that  if any goods is imported for personal use than it cannot be confiscated  for violation  of above Rule. There is no value limit  for personal import without any licence.However, Department of Revenue/ Customs department   ,at many place, does not allow goods imported for personal use. Reason cited is based on 3(1)(i) of   Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993. This is not true. 


Once Rule itself says that personal use goods are not to be confiscated ,then ,where is question of restricting import of consumer electronics goods ,valued more than C.I.F ,Rs 2000/= through  Order. Hence, goods for personal use should be allowed without any adjudication , whether it is old or new.  Revenue authority and DGFT to rectify and make  importing  goods for personal use as smooth affair.

Exports transaction cost to be cut by 40 percent

Scindia said transaction of exports cost nearly $14 billion annually. This is nearly seven percent of India's total exports value. 

Total merchandise exports from India was $178.66 billion in 2009-10. The government targets to increase it to $200 billion during the current fiscal. (Source:http://economictimes.indiatimes.com/news/economy/foreign-trade/Exports-transaction-cost-to-be-cut-by-40-percent/articleshow/6426877.cms)

Import of wine as gift or sample into India through courier

                    


 Import of wine is free ,that is without any import licence.

 But , you have to pay  customs duty @ 150 % EXCEPT for sacramental wine(Which is  @ 36.136 %).

 As far IEC is concerned , if  importer is commercial organisation, then requires an IEC.

 Sample of wine or gift,supplied free of cost through Courier and valued less than Rs 10,000/=, is  with out any  Customs duty. For more information ,you can visit my site www.globaltaxguru.in.
If you are interested in regular business ,then ,i can help you.
Thanks and warm regards
Ravindra Kumar
www.globaltaxguru.in

Fake goods are not allowed to be imported and exported out of India.It is illegal

 Even some body buy on line  fake goods and try to import fake ,or look alike ,or counterfeit goods into India. It is illegal. Customs may  initiate prosecution under Customs Act 1962.Avoid such import and export.

What is intellectual property ?


What  are goods infringing intellectual property rights ?


Who is right holder ?


For easy understanding  and reference definitions are reproduced(  Source:Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007, Notification No. 47/2007-Cus. (N.T.), dated 8-5-2007 )

" 2.          Definitions. -   

 (a) “ goods infringing intellectual property rights"  means any goods which are made, reproduced, put into circulation or otherwise used in breach of the intellectual property laws  in India or outside India and without the consent of the right holder or a person duly authorized to do so by the right holder;

(b) "intellectual property"  means a copyright as defined in the Copyright Act, 1957, trade mark as defined in the Trade Marks Act,1999, patent  as defined in the Patents Act, 1970, design as defined in the Designs Act, 2000 and geographical indications as defined in the  Geographical Indications of Goods (Registration and Protection) Act, 1999;

(c) “ Intellectual  property  law”  means the Copyright Act, 1957, the Trade Marks Act,1999, the Patents Act, 1970, the Designs Act, 2000 or  the  Geographical Indications of Goods (Registration and Protection) Act, 1999 ;

(d) " right holder"  means a natural person or a legal entity, which according to the laws in force is to be regarded as the owner of protected intellectual property right, its successors in title, or its duly authorized exclusive licensee as well as an individual, a corporation or an association authorized by any of the aforesaid persons to protect its rights."

Regards

Global Tax Guru

www.globaltaxguru.in

www.globaltaxguru.in: Import customs duty on Mobile phone,PDA,smart phone,GSM

www.globaltaxguru.in: Import customs duty on Mobile phone,PDA,smart phone,GSM , import duty is 1.03% on mobile phone.

Regards

Ravindra Kumar

Global Tax Guru

Classification of ebook reader is CTH 8543 70 99

e Book reader is having individual function of displaying text. Rightly classifiable under CTH 8543 70 99  , for importing into India.
Regards
Ravindra Kumar
Global Tax Guru
www.globaltaxguru.in

custom duty on LED TV 32"

Dear Sir,

Thank you very much for your timely help.

Regards,

Vishwanathan.K

On Sat, Aug 21, 2010 at 12:30 PM, ravindra kumar <ravindrakumar_iitd@yahoo.co.in> wrote:

Dear Vishwanathan,                                    Pl visit my site www.baggage.globaltaxguru.in for duty liability.     Thanks and regards Ravindra Kumar www.globaltaxguru.in --- On Sat, 21/8/10, vishwanathan krishnamurthy <vishica@gmail.com> wrote: From: vishwanathan krishnamurthy <vishica@gmail.com> Subject: help regarding custom duty on LED TV 32" To: ravindrakumar_iitd@yahoo.co.in Date: Saturday, 21 August, 2010, 3:07 AM Dear Sir, Let me introduce myself I am Viswanathan.K staying in Ras Al Khaimah (UAE). I got your mail ID from a Blog. I am going for my first vacation. I am planning to take a new samsung LED TV 32"  for my family. The value of it is around Rs. 32000/- (AED 2,500/-)  I just want to know is it a dutiable item? If Yes then how much they levy as duty. Your reply will be of great help to me  in planning my travel.  Thanks in advance. --  with regards, viswanathan.k.

SAMPLE:Laws relating for import and export of samples through Post, Courier and Baggage

Import of samples -Para 2.18 of FTP- Import of samples shall be governed by HBP v1.

Export of Samples Para of 2.3of FTP - Export of samples and Free of charge goods shall be governed by provisions given in HBP v1.

Export / Import by Post / Courier -Para 6.23 of Foreign Trade Policy (FTP)-Goods including free samples, may be exported / imported by airfreight or through foreign post office or through courier, as per Customs procedure.

Passenger Baggage - Para 2.20 of FTP -Samples of such items that are otherwise freely importable under FTP may also be imported as part of passenger baggage without an Authorisation.

Exporters coming from abroad are also allowed to import drawings, patterns, labels, price tags, buttons, belts, trimming and embellishments required for export, as part of their passenger baggage without an Authorisation.

Handloom- SPECIAL FOCUS INITIATIVES CHAPTER- Para 1 B (IV)(c) of FTP- Duty free import entitlement of hand knotted carpet samples is 1 % of FOB value of exports during previous financial year.

Gems & Jewellery- Para 1 B (vii) (c)- Duty free import entitlement of commercial samples shall be Rs. 300,000

2. 
   
   No Duty on Samples and Prototypes :

There is no duty on Free Sample, Commercial samples,prototypes and price Lists ( Supplied free of cost),if they satify conditions of Notification No 154/ 13.07.94 read with Geneva Convention of 7 November, 1952, imported through Post, Courier,Baggage or Air Cargo.

No duty for Gifts, Life saving drugs

I- No duty for Gifts

a) Bonafide gifts imported through Post and Courier- Upto Rs 10,000/-, No duty.

(Notification No 171/16.09.93(Amended)

b) BAGGAGE- Gift and donations -Relief goods and edible material-No duty

( Notification No 148/ 13.07.94)

                      -Gifts to Ministers and Public Servants- no duty- Notification No 326/23.12.83

II- NO duty- for Life Saving Drugs for Personal use import by Post or Air

(Notification no 21/2002 ,S.NO.403,CONDITION 8, List 4.)

III- No duty-Post Parcel import for personal use value not more than Rs 100

(Notification no 21/2002 ,SN NO. 406.)

IV- No duty – On used bonafide personal effects of deceased Persons

(Notification no 21/2002 ,SN NO. 405.)

V- No duty- on Foodstuffs imported by person residing in India, but not being Citizen of

India, upto Rs 1,00,000/- in a Financial Year-

[ Notification No 207/17.07.89 ( Amended)].

VI- No duty- For buying goods at Duty Free shop upto Rs 5000/- per passanger per visit

(F.No. 495/7/2005-Cus.VI MOF,DOR dated 26.09.2005)

Gifts-You should send or receive gifts but not tension or worries.

You should send or receive gifts but not tension or worries.

Sending and receiving gifts are very personal and emotional issues in ones life.If you are likely to receive gifts from a friend or relatives or for that matter any person, from any place out side India,or,sending gifts to any place out side India. There are ways and mean to receive or send gifts without any worries. Only ,you need to have plan and get awared to existing laws and practice related to import and export of gifts in India.

Mainly ,Indian Customs is for leving and collecting duty on goods, DGFT is for deciding imortability and exportability of goods , and RBI is for

foreign exchange related to such goods.

Large number of gifts and goods for personal use are imported and exported through Post, Courier and Air.

It is advisable to be in touch with websites of Govt of India to have information on issue related to Gifts. In addition to this , you may visit my blog ,www.personalimport.blogspot.com , which i am writing since 2006.

To check whether you are eligible for free gifts ( without any duty) ,or, liable to pay duty,or, liable to pay fine and penalty in addition to duty,or,gifts being

prohibitive in nature and will not be released by Customs. You may visit my site www.globaltaxguru.in  and select your mode of import such as Post, Courier, and Air cargo.

If you have selected Post then default screen will have

Personal Button as selected, you have to select Gift then enter product name,and, submit, you will get desired information.

In case you are selecting Courier or Air cargo then you have to follow this procedure: enter product name, select product, you will know customs classification, merit rate of duty, licencing conditions. If goods is restricted then you have to pay fine and penalty ,in addition to duty( If any), if you are not producing licence from DGFT. Prohibitive goods will not be released by the Customs ,even they are send as gift.

Important laws govering gifts are:-

For Licencing:

-Import of Gifts - Para 2.19 of Foreign Trade Policy (FTP) ,27th August 2009 - 31st March 2014,

Import of gifts shall be permitted where such goods are otherwise freely importable under FTP. In other cases, aCustoms Clearance Permit (CCP) shall be required from

DGFT.

- Export of Gifts, - Para 2.32 of Foreign Trade Policy (FTP), Goods, including edible items, of value not exceeding Rs.5,00,000 /- in a licensing year, may be exported as a gift.

However, items mentioned as restricted for exports in ITC (HS) shall not be exported as a gift, without an Authorisation.

For Customs Duty :

I- No duty for Gifts

a) Bonafide gifts imported through Post and Courier- Upto Rs 10,000/-, No duty.

(Notification No 171/16.09.93(Amended)

b) BAGGAGE- Gift and donations -Relief goods and edible material-No duty

( Notification No 148/ 13.07.94)






     Gifts to Ministers and Public Servants- no duty- Notification No 326/23.12.83

II- NO duty- for Life Saving Drugs for Personal use import by Post or Air

(Notification no 21/2002 ,S.NO.403,CONDITION 8, List 4.)

III- No duty-Post Parcel import for personal use value not more than Rs 100

(Notification no 21/2002 ,SN NO. 406.)

IV- No duty – On used bonafide personal effects of deceased Persons

(Notification no 21/2002 ,SN NO. 405.)

V- No duty- on Foodstuffs imported by person residing in India, but not being Citizen of

India, upto Rs 1,00,000/- in a Financial Year-

[ Notification No 207/17.07.89 ( Amended)].

VI- No duty- For buying goods at Duty Free shop upto Rs 5000/- per passanger per visit

(F.No. 495/7/2005-Cus.VI MOF,DOR dated 26.09.2005)

Find out what is best way of importing ipad into India.

If  you are importing ipad into india and buying from ebay or Amazon

,then site www.globaltaxguru.in shows Customs tariff  heading,Rate of Duty,

 Licencing conditions,   assessable value to calculate customs duty amount ,

total landing cost. Further, what will be duty if ipad is imported

 for different purpose such as Personal import, gift, commercial use,

 repair, return and replacement. Also it shows 

what would be customs rate of duty for ipad 

if imported through courier, air cargo, sea cargo.

 Bona-fide Gift upto Rs 10,000/- are without any duty

if imported through Courier.

Regards

Ravindra Kumar

ipad will attract less customs duty if retail price is declared on Pre-packaged ipad before importing into India

ipad is attracting duty @ 14.71%. But if you are importing ipad and it is in pre-packaged conditions and retail price is already declared,then,  4 % SAD is not paid ( As per Notification 29/2010 - Customs, dated 27-02-2010 ) . Customs duty on ipad is reduced from 14.71% to 10.3%. You can visit my website www.globaltaxuru.in for duty calculation and landing cost.

Global Tax Guru

New Rupee symbol

The new Rupee symbol  has been added  to our Global  Tax Guru site for import and export community.
Regards
Ravindra Kumar
Global Tax Guru

Import of Multichannel GSM/CDMA receivers, transmitters and transreceivers capable of receiving or transmitting or both in two or more frequencies simultaneously shall be “restricted”.

                                      Now actual user only allowed to import these items. There is no change in duty.
                                       There is a confusion ,whether this notification is restricting Mobile phone based on                  
                                        GSM  or  CDMA technology or Telecome equipment.
                                          The DGFT  notification does not give any tariff heading classification along with policy restricting. But as per The Economic Times ,page 7,Delhi edition, it is restricting only telecom equipments.

Global Tax Guru: Customs duty on LED 3D TV is now 26.85%

Global Tax Guru: Customs duty on LED 3D TV is now 26.85%

Customs duty on LED 3D TV is now 26.85%

LED TVs are technically a member of the LCD TV family. The display screen on a LED is a liquid crystal display the same as it is on any other LCD TV. The main difference between the two lies with different backlighting techniques which may change the picture quality characteristics dramatically ( Source: http://www.lcdtvbuyingguide.com/hdtv/led-vs-lcd.html)

if LED  3 D TV size is below  63 cm then ,it is to be classified  under CTH 85287218,
otherwise,it is under CTH 85287219. Total duty @ 26.85%.

 No import licence is required.                         
Regards
Ravindra Kumar
www.globaltaxguru.in

Confusion regarding customs duty on mobile phone

There is only one duty on mobile phone, which is duty of excise, called NCCD, which is equivalent to 1%. There
is also education cess @ 3 % on this 1%. Therefore, total duty on mobile phone is 1.03%.  Further , mobile phone is charged  excise duty @ 1.03%  on its MRP price
 ( After abatement),if domestically produced. But, if  mobile phone is imported than duty is calculated based on  value ( Assessable value +customs duty) and  abetted  MRP value ( After abatement), which ever gives less duty.
Regards
Ravindra Kumar
www.globaltaxguru.in

Customs duty on set top box for TV and internet

Customs duty on set top box for internet attract customs duty @ 15.03%. Where as set top box for TV attract customs duty @ 20.94%. If it is received as bonafide gift through courier then it it can be received without paying any duty if it valued up to Rs 10,000/-. However,if imported as bonafide gift through Post then Upto Rs 2000/-(C.I.F) is allowed without any duty .

Customs duty on set top box, If you are bringing through baggage ,then your duty liability will change as per your age,stay or bringing as un accompanied baggage,etc. It is freely importable but require licence for importing through Postal after Rs 2000/-(C.I.F). You may visit my sites :www.baggage.globaltaxguru.in ( for baggage); www.postal.globaltaxguru.in (for Postal);

www.courier.globaltaxguru.in ( for courier) and www.ebay.globaltaxguru.in ( if you are an ebay user).

If you want to compare rate of duty for different mode of import such as courier,postal,baggage, air cargo and sea cargo ,then , you can visit www.globaltaxguru.in.

Warm regards

Ravindra Kumar

Customs duty on plasama TV

Customs duty on plasama Tv after budget is 26.85%. If you are bringing plasama tv through baggage ,then your duty liability will change as per your age,stay or bringing as un accompanied baggage,etc. It is freely importable but require licence for importing through Postal. You may visit my sites :http://www.baggage.globaltaxguru.in ( for baggage); http://www.postal.globaltaxguru.in (for Postal);

http://www.courier.globaltaxguru.in ( for courier) and http://www.ebay.globaltaxguru.in ( if you are an ebay user).

If you want to compare rate of duty for different mode of import such as courier,postal,baggage, air cargo and sea cargo ,then , you can visit http://www.globaltaxguru.in.

Warm regards

Ravindra Kumar

import of polished or rough stone or diamond

You can import rough and polished stone through air cargo, get import export code from DGFT ,Meet any nationalized bank for foreign remittance. Hire registered Customs House Agent for assisting in customs clearance.It is simple and lot of people are already doing. One can also explore through postal medium.

Regards

Ravindra Kumar

iPAD will attract Customs duty @ 14.71 %

If any body wish to import into India, ipad will attract customs duty @ 15.03%. Bonafide gift of ipad Value upto Rs 10,000/- is without any duty if imported through Courier. However , value of ipad if exceed Rs 2000/-(C.I.F) through postal then ,it is restricted, attracts fine and penalty,in additions to duty.One can visit my site www.ebay.globaltaxguru.in ,if you are buying from ebay, or www. postal.globaltaxguru.in if importing through Postal or www.courier.globaltaxguru.in ,if importing through courier.

There are different rate of duty if imported for different purpose such as personal use, commercial use, repair ,return and replacement for many goods.

Explore www.ebay.globaltaxguru.in for purchasing goods from ebay

i have already integrated my site www.ebay.globaltaxgurur.in to ebay and amazon.It is working fine with ebay.you can enter any product ,it will fetch value and shipping cost from ebay then it will ask you other detail to show rate of duty, total duty amount, landing cost,what is duty saving if imported through Post,Courier,Baggage,sea cargo and air cargo.Further duty variability as per purpose such as gift,personal use, commercial use, repair, return.Our Indian tax system is complex and require lot of effort to make it easy to understand for common man.
pl explore my site which is still under development and send me your feedback.
Regards
Ravindra Kumar

Duty on toys @ 14.712 %. but require import compliance for safety issue

Duty on toys @ 14.712 %. import of toys are to satisfy various safety requirement as per ISO 8124 ,IS 9873 of BIS.It is advisable that you either visit or contact DGFT office or website for more information. Inport of toys are restricted from some country.

If some body is interested to know duty,import conditions for importing toys from ebay,may visit www.ebay.globaltaxguru.in or www.globaltaxguru.in.

i will appreciate feedback ,if any body use it.
Regards,
Ravindra Kumar

Customs duty on digital camera is now 26.85%

Digital camera attracts duty @ 26.85% and same duty is for Video camera recorder. Gift of Digital camera utpo Rs 10,000/- still without duty if imported through Courier. But same value of camera will attract fine and penalty ,in addition to duty, if imported through Post.

Ravindra Kumar

Customs duty on LCD TV is now 26.85%

After current budget ,LCD TV attract duty @ 26.85 %. This duty is same if you are importing through air cargo,sea cargo and Courier. Further LCD TV is MRP item. To calculate CVD, whether it is based on basic customs duty or value arrived after giving abatement of 30% on MRP.

one can explore my website www.globalatxguru.in ,or, www.ebay.globaltaxguru.in for more information.

Regards

Ravindra Kumar

Personal import and export: Customs duty on mobile phone,smart phone,iphone is 1%

Personal import and export: Customs duty on mobile phone,smart phone,iphone is 1%

Customs duty on mobile phone,smart phone,iphone is 1%

Customs duty is reduced on mobile phone after this budget. Now customs duty is only 1% and it is base on MRP price. To calculate duty, abatement of 35 % is given on MRP price. Now spl CVD is removed on mobile phone, smart phone , iphone.

Ravindra Kumar

Customs duty on e reader,kindle

e book reader may be classified under Custom-tarif heading 8543 70 99. Merit Rate of duty                 26.85% Licence Condition                  No Licence Required Regards Ravindra Kumar Global Tax Guru www.globaltaxguru.in

customs duty on ipad

ipad,a tablet computer by apple.

It will fall under CTH 84713090,Merit Rate of duty 12.57%

Licence Condition - No Licence Required.

Regards

Ravindra Kumar

Mobile phone and smart phone are to be assessed on MRP price for excise duty,in additions to duty based on Basic Customs duty

Mobile phone/smart phone are charged excise duty which is higher of either based on Basic customs duty and assessable value or MRP for domestic market. On the same way levy of National Calamity Contingent Duty (NCCD) on Cellular / mobile Phones on the basis of MRP / Retail Sale Price.

Circular No.12/20F.No.528/10/2009-Cus.(TU)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

12^th March, 2009.

Subject: Clarification on levy of National Calamity Contingent Duty (NCCD) on Cellular / mobile Phones on the basis of MRP / Retail Sale Price – regarding.

***

It has been brought to the notice of the Board that some of the Customs field formations are not charging the levy of National Calamity Contingent Duty (NCCD) on the basis of Maximum Retail Price (MRP) / Retail Sale Price (RSP) of the Cellular / Mobile phones.

2. In this regard, your attention is also invited to the entry at Serial No.87 of the Notification No.14/2008-CE(NT) dated 1.3.2008 and Notification No.49/2008-CE(NT) dated 24.12.2008 issued in supersession of the former notification. In the aforesaid entry, ‘Telephone sets including telephones with cordless handsets; videophones’ have been specified for the purpose of charging excise duty on MRP basis. Doubts have been raised by the trade and field formations on whether ’telephone sets for cellular network or other wireless network‘ are covered by the description of goods specified under the aforesaid Serial No.87 of the said notification.

3. The matter has been examined in the Board. In terms of section 3 of the Customs Tariff Act, 1975 read with section 136 of the Finance Act, 2001, imported goods are charged to NCCD in the same manner as the relevant provisions for levy and collection of the duty of Excise on such goods apply in terms of the Central Excise Act, 1944. Accordingly, in terms of proviso to sub section (2) of section 3 of the Customs Tariff Act, 1975, imported goods shall be charged to additional duty of Customs on the basis of MRP / RSP, if in case of imported article, the MRP / RSP is required to be declared under the Standards of Weights and Measures Act, 1976 or the rules made thereunder, and such product is listed under the Notification prescribing levy of Excise duty on MRP basis i.e. Notification No.49/2008-CE(NT) dated 24.12.2008.

4. From the point of classification, it is clarified that subsequent to changes made in the Harmonized System of Nomenclature (HSN) in 2007, the First Schedule to the Customs Tariff Act, 1975 was also revised so as to include both ‘line telephones’ and ‘telephones for cellular networks or for other wireless networks’ under heading 8517 as ‘Telephone sets, including telephones for cellular networks or for other wireless networks’. Further, no changes have been made so as to remove cellular / mobile phones from the scope of MRP based assessment. The entry ‘cellular or mobile phones’ found in earlier notifications under heading 8525 was deleted as there was no need to have separate entry for cellular / mobile phones as the present entry ‘telephone sets’ under heading 8517 covers both ‘line telephones’ as well as ‘cellular / mobile phones’.

5. In view of the above, it is clarified that telephone sets for cellular networks or for other wireless networks are covered under the description ‘Telephone sets’ under Sl.No.87 of Notification No.49/2008-CE(NT) dated 24.12.2008 and therefore they would continue to be assessed for additional duties of customs on the basis of MRP / RSP. Consequently, NCCD, being a duty of excise, is also required to be collected on the basis of MRP / RSP, in the same manner as applicable to the levy of additional duty under section 3 (2) of the Customs Tariff Act,1975.

6. All pending assessments, if any, may be finalized accordingly.

7. The field formations as well as trade and industry may be suitably informed accordingly.

Yours faithfully,

(M.M. Parthiban)

Director (Customs)