Circular No.3/2022-Customs dated 01.02.2022 issued by CBIC regarding Clarification on applicability of Social Welfare Surcharge on goods exempted from basic and other customs duties/cesses.
As per the recently issued circular no 3/2022 on date 01.02.2022 by by CBIC it has been clarified that if the basic custom duty is exempted on imported goods and it comes under Nill custom duty, then the social welfare surcharge also called as SWC will not be applicable and it will consider and calculated as Nill too.
This procedure is already in practice and system calculate the SWC amt @10% on Custom duty only but not on the value of Goods imported, but due to the certain field formations have taken a view that Social Welfare Surcharge shall be payable on notional customs duty as determined on Tariff rate, the CBIC has issued this circular to clarify it on record with permanent solution.
The other part of taxes i.e. IGST, CVD, ADD etc. are applicable and payable as per the relevant notifications with respect to hs code and goods imported.
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