25 Feb 2022
No Social Welfare Surcharge payable on goods exempted from basic and other customs duties
The Department of Revenue (Tax Research Unit) has issued a clarification on the applicability of Social Welfare Surcharge (SWS) on goods exempted from basic customs duty or other customs duties/ cesses.
The SWS is collected by the Central Government on imported goods under Section 110 of the Finance Act, 2018. It is levied and collected as a duty of customs and is calculated at the rate of 10% on the aggregate of the customs duties, taxes and cesses.
As the SWS is calculated on the aggregate of customs duty payable on the import of goods and not on the value of the imported goods, it has been clarified that the SWS would be ‘Nil’ in cases where the aggregate of customs duty is zero even though SWS has not been specifically exempted.
This clarification helps to settle the uncertainty on applicability of SWS where customs duty had been exempted. Certain field formations had been taking a view that even where the customs duty was exempted, SWS was payable on notional customs duty determined at the tariff rate.
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad has set aside the confirmation of differential duty demand by the Customs department on the ground of Country of Origin (COO) Certificate being invalid.
Download PDF to read more
A Comparative Analysis of the New Criminal Bills and the Existing Codes
21 Nov 2023
Interplay of the Insolvency and Bankruptcy Code, 2016 with the provisions of the Income Tax Act, 1961
20 Nov 2023
Supreme Court ruling on the Most Favoured Nation clause likely to withhold benefits for taxpayers
17 Nov 2023If you would like to receive content directly in your inbox from our knowledge repository, please complete this subscription form. This service is reserved for clients and eligible contacts.
Under the rules of the Bar Council of India, Trilegal is prohibited from soliciting work or advertising in any form or manner. By accessing this website, www.trilegal.com, you acknowledge that:
We prioritize your privacy. Before proceeding, we encourage you to read our privacy policy, which outlines the below, and terms of use to understand how we handle your data:
For more information, please read our terms of use and our privacy policy.
