Import Tax in India

The import tax in India, also referred to as import duty, is imposed by the Central Board of Excise & Customs, Department of Revenue of the Union Finance Ministry. It is an indirect tax. There are 4 major types of import duties - basic import taxes, true countervailing taxes, additional customs taxes, and anti-dumping duty.

Basic Import Taxes in India



These taxes are levied on almost all the goods and products that are brought within the national borders of India. The rates of these taxes vary from 5 to 45 percent on the basis of quantity and type of the product.

Additional Customs Taxes



The additional customs duties are similar to the central excise duties that are imposed on products that are produced in India. If the import of a particular product is regarded as its manufacture as per the guidelines mentioned in the Central Excise Act 1944, it will be subjected to these taxes.

The tax is imposed on the base value of the imported good. This is inclusive of the landing charges and relevant customs duties.

True Countervailing Taxes


The true countervailing duties are imposed on products imported from outside India to make sure that the domestic products have a fair playing ground. This is done to make sure that the Indian products, which are subjected to high excise taxes, do not become costlier than the imported products.

Anti-Dumping Duty


Anti-dumping duty is also known as Safeguard Duty and the main aim behind creating this tax is to protect the indigenous industries. The tax is primarily levied on products that are supposed to cause imbalance or damage to the local markets.

This duty is not applicable for goods which have been imported by organizations that solely focus on export. Companies operating in Free Trade Zones and Special Economic Zones are exempt from these taxes as well.

Import Duties Procedure


Following are the various steps followed for filing the import taxes:

The taxpayer will require a Bill of Entry that specifies the goods that have been imported. Tax payers are provided access to the Green Channel Facility if they are the leading names in their industry and import substantial number of goods on a regular basis. This facility makes the whole process of import a quicker one. As part the Facility, large volumes of a product can be imported by a company without every unit being checked individually. However, this facility is only allowed if there is no suspicion about the products’ quantity or quality.

If the tax payer has used the Electronic Data Interchange process to maintain a documentation of the import process then that entity need not provide a Bill of Entry.

Last Updated on 3/13/2012

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