Imports into India are charged with duties in the nature of customs duty and in the nature of turnover tax on import. The following are the most important: Basic Duty: It is the “standard rate” of tariff. Currently it is either 7.5 % or 10 % for most goods.
Additional Duty (Countervailing Duty) (CVD):
The Additional Duty is equal to the Excise Duty levied on a like product manufactured or produced in India. For most goods the rate currently stands at 12% (effectively 12.36% including Education Cess).
Special Additional Duty (Special Countervailing Duty):
Imported goods are also liable to Special Additional Duty having regard to the maximum sales tax, local tax or any other charges for the time being classified on a like article if it was sold or purchased in India. It is calculated at 4%. However, this duty is refundable if the imported goods are sold by the importer as such (no manufacturing) after payment of applicable VAT or Central Sales Tax.