Basic customs duty increased on 19 items to control current account deficit. Increased rates effective from 27.09.2018, midnight of 26th September 2018
The Central Government has increased basic customs duty on various products to curb the import of certain imported items. The total value of imports of these items in the year 2017-18 was about Rs 86000 Crore.
The Press Release issued in this respect by the Finance Ministry terms those items as “non-essential items“. According to the said release, these changes would narrow the current account deficit (CAD).
The increased rates of basic customs duty (BCD) will be effective from 27.09.2018 (i.e., midnight of 26th September/27th September, 2018)
The list of 19 items on which the customs duty has been increased are as under:
| S. No. | Item | Tariff code (HSN) | Basic customs duty | |
| From | To | |||
| 1 | Air conditioners | 8415 | 10 | 20 |
| 2 | Household Refrigerators | 8418 | 10 | 20 |
| 3 | Washing machines less than 10 Kg | 8450 | 10 | 20 |
| 4 | Compressor for air conditioners and refrigerators | 8414 30 00 / 8414 80 11 | 7.5 | 10 |
| 5 | Speakers | 8518 29 00 | 10 | 15 |
| 6 | Footwears | 6401 to 6405 | 20 | 25 |
| 7 | Radial Car tyres | 4011 10 10 | 10 | 15 |
| 8 | Non industrial diamond (other than rough diamonds), i.e., cut and polished diamond | 71 | 5 | 7.5 |
| 9 | Diamonds-semi processed, half cut or broken | 71 | 5 | 7.5 |
| 10 | Lab grown diamonds | 71 | 5 | 7.5 |
| 11 | Cut and polished Colored gemstone | 71 | 5 | 7.5 |
| 12 | Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal | 7113 | 15 | 20 |
| 13 | Articles of Goldsmith or silversmith wares and parts thereof of precious metal or of metal clad with precious metal | 7114 | 15 | 20 |
| 14 | Bath, shower bath, sink, wash basin, etc. of plastics | 3922 | 10 | 15 |
| 15 | Articles of plastics for conveyance and packing such as boxes, case, containers, bottles, insulated ware etc. | 3923 | 10 | 15 |
| 16 | Tableware, kitchenware and other household items of plastics | 3924 | 10 | 15 |
| 17 | Miscellaneous items of plastics such as office stationery, fitting for furniture’s, decorative sheets, statuettes, beads, bangles etc. | 3926 | 10 | 15 |
| 18 | Trunks, Suitcase, Executive cases, Brief Cases, travel bags and other bags etc. | 4202 | 10 | 15 |
| 19 | Aviation turbine fuel | 2710 19 20 | 0 | 5 |
The relevant Notifications have also been issued.
Related party transaction u/s 40A(2) shall be treated as bona fide, unless AO finds that one of them is trying…
The word ‘transfer of property’ does not include ‘acquiring’ of property or ‘purchasing’ of property and only can be confined…
AO is not justified in questioning the cash withdrawals from bank account on the ground that the assessee had sufficient…
Return/Balance sheet to be considered as being within time if filed within timeline condoned by Hon'ble Supreme Court due to…
Satisfaction Note u/s 153C - term “immediate” cannot be extended to defeats the purpose of cost effective, efficient and expeditious…
Addition for rental income on accrual basis deleted as assessee was pursuing a civil case against the tenant In a…