If you are in a trade business in India, then it is necessary that you well-understand the concept of custom import duty. This is a short of direct tax that you need to pay for the different products that you import and export in the country. Based on the Customs Act 1962, one has to abide by the lay and pay tax for goods, penalties, offences, etc. This duty is paid on the total value of the goods along with the landing charges. Thus, understanding this concept in detail is required to manipulate the information to understand the entire process and calculate profit from the business.
When you calculate the custom import duty
, it is necessary that you consider following factors – type of goods, country of origin, the value of goods, place of manufacturing, the cost of shipping, insurance and other changes. All these are an important part of the tax and you need a very clear understanding of these elements. Most of the country levy certain tax on particular goods and even provide no tax to certain goods. Thus, detailed information on the duty is highly required to understand the profit from the business. For better understanding, you can also make use of the calculator that is available online.
It is always a better deal to hire an expert to calculate custom import duty for your business. An expert is well aware of the elements that influence in calculating it accurately. If you are new to the industry, then the internet is the best place where you will get an agency that will handle this task for you. The expert agency will handle the entire process and will calculate the right custom import duty for you. This will support you in finding the right market and trader for a successful business.