I thought both are interchangeable terms. If I am wrong kindly educate me. I have no desire to prove you wrong, what will I gain by doing so. I only presented facts to set things straight as import or Customs duties have come down significantly after 1991-92 and they do not result in a imported goods costing many times over as was indicated by you. Pl let me know the diff between the two duties.Thanks.

I said highest rate is 30% and not a flat rate. Different items attract different duties. There can be a few exceptions like the one you have stated and let us see what Gulshanji has to say in the matter. 

.Import duty is levied on imported goods at specified rates and it forms the landed price at the port of entry'. The other duties are loaded to make the  price of imported  product at par to a large extent with prevailing prices of similar goods of Indian origin to have a level playing field, so that Indian producers are not disadvantaged. Thus CVD can be said to be equivalent to Excise Duty, SAD can be said to be equivalent to VAT etc. My contention was that the import duty is now maximum at 30% of C&F price which you said was very high to make imported products cost many times over. The very high import duty is applicable to only a handful of products. The thread was on taxation of gifts which normally attarct 30% but if they are in the class which attracts very high duty then it will attract that duty.

vijay wrote:

.Import duty is levied on imported goods at specified rates and it forms the landed price at the port of entry'. The other duties are loaded to make the  price of imported  product at par to a large extent with prevailing prices of similar goods of Indian origin to have a level playing field, so that Indian producers are not disadvantaged. Thus CVD can be said to be equivalent to Excise Duty, SAD can be said to be equivalent to VAT etc. My contention was that the import duty is now maximum at 30% of C&F price which you said was very high to make imported products cost many times over. The very high import duty is applicable to only a handful of products. The thread was on taxation of gifts which normally attarct 30% but if they are in the class which attracts very high duty then it will attract that duty.

 

Actually, the thread related only to domestic gift attracting only income tax. The rates are 10%, 20% and 30%.  Customs duty will be involved only on imports.  Here we are making general discussion only. If somebody feels that the gift is taxed too much and he gains nothing, he can well discard the gift. Incidentally, some times, many try to evade the duty/ tax and they are also subject to penalty and/ or confiscation of goods. In such cases, mostly the goods involved are discarded.   

Gulshan Kumar Ajmani wrote:

vijay wrote:

.Import duty is levied on imported goods at specified rates and it forms the landed price at the port of entry'. The other duties are loaded to make the  price of imported  product at par to a large extent with prevailing prices of similar goods of Indian origin to have a level playing field, so that Indian producers are not disadvantaged. Thus CVD can be said to be equivalent to Excise Duty, SAD can be said to be equivalent to VAT etc. My contention was that the import duty is now maximum at 30% of C&F price which you said was very high to make imported products cost many times over. The very high import duty is applicable to only a handful of products. The thread was on taxation of gifts which normally attarct 30% but if they are in the class which attracts very high duty then it will attract that duty.

 

Actually, the thread related only to domestic gift attracting only income tax. The rates are 10%, 20% and 30%.  Customs duty will be involved only on imports.  Here we are making general discussion only. If somebody feels that the gift is taxed too much and he gains nothing, he can well discard the gift. Incidentally, some times, many try to evade the duty/ tax and they are also subject to penalty and/ or confiscation of goods. In such cases, mostly the goods involved are discarded.   

 

An excellent clarification sir. You could make me understand the nuances of Taxation which was Greek and Latin to me all along.