Budget 2020-21,BCD on vehicles other than tramway, rolling stock, railway and parts.

Basic Customs Duty on vehicles other than tramway, rolling stock, railway and parts, Budget 2020-21

 

Basic Customs Tax changes on goods under Chapter 87

The Customs duty changes  declared as per Indian Budget 2020-21 on import of   vehicles other than tramway, rolling stock, railway and parts is as follows:

The Union Finance Minister Nirmala Sitharaman presented Union Budget 2020 in Parliament around 11 am on February 1. . Till 2016, the Union Budget was presented on the last working day of February. Former finance minister Arun Jaitley changed the tradition in 2017 when he presented the Budget on February 1. Ahead of the Union Budget, an Economic Survey is presented by the Chief Economic Advisor.

As per Indian Budget 2020-21, the basic customs duty changes on goods under chapter 87is shown below.  If no changes on present customs basic duty on products under chapter 87,under Budget 2020-21 the same is mentioned:

(1) Concessional BCD has been provided on electric motor vehicles under PMP plan. BCD is being increased [with effect from 1st April,2020] on electric motor vehicles as under:

Chapter

Heading

Description

From

To

8702,

8704

Completely Built Units (CBUs) of commercial electric vehicles

25%

40%

8703

Semi Knocked Down (SKD) forms of electric passenger vehicles, Three-wheeler

15%

30%

8702,

8704,

8711

Semi Knocked Down (SKD) forms of electric vehicles- Bus, Trucks and Two wheelers

15%

25%

8702,
8703,
8704,
8711

Completely Knocked Down (CKD) forms of electric vehicles – Passenger vehicles, Bus and Trucks, Three wheelers, Two wheelers.

10%

15%

The above changes are being carried out by amending S. Nos 525, 526A, 531A of notification No 50/2017-Customs dated 30th June, 2017 vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020.

BCD on Completely Built Units (CBUs) of commercial vehicles [ other than electric vehicles] falling under headings 8702 and 8704, is being increased from 30 to 40% [with effect from 1st April, 2020] by amending S.No. 524 of notification No 50/2017-Customs dated 30th June, 2017 vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020. Consequently, Completely Built Units (CBUs) of commercial vehicles including electric vehicles will attract 40 % BCD with effect from 1st Aril, 2020

CBU of all commercial vehicles (including electric commercial vehicles) falling under headings 8702 and 8704 is being exempted from levy of Social Welfare Surcharge with effect from 01.04.2020 by amending notification 11/2018-Customs dated 2.02.2018 vide CUSTOMS Notification No 09 of 2020 dated 02nd February, 2020.

 

The above information explains about basic customs duty changes on import of goods under chapter 87, under Indian Union Budget 2020-21. Discuss below your thoughts about customs duty on goods under chapter 87,  as per Indian Budget 2020-2021. 

 

 

 

The above post explains about the clarifications below:

 

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