Question

1.YOU IMPORTED 20 FOOT CONTAINER OF TELEVISION FROM JAPAN;100 TELEVISIONS

2. TOTAL VALUE OF SHIPMENT IS $100,000CANADIAN DOLLARS,CIF MONTREAL

3. INTERNATIONAL FREIGHT PAID:$2000,CDN

4. INTERNATIONAL INSURANCE PAID:$1000CDN

5. DOMESTIC INSURANCE:$1000CDN

6. DOMESTIC TRANSPORT:$1000CDN

7.SELLING COMMISION:$2000CDN

8. SPECIAL PACKING:$2000CDN

9. WHAT IS THE VCC?

10. WHAT IS THE VFD?

11. RATE OF CUSTOMS DUTY 10%

12.RATE OF GST5%

13. WHAT IS THE AMOUNT OF CUSTOMS DUTY ?

14. WHAT IS THE VALUE FOR TAX?

15. WHAT IS THE GST AMOUNT ?

Answer 1

Here we are given ,

Total Value of the shipment is $100,000

International Freight Paid = $2000 CND

International Insurance paid = $1000 CND

Domestic Insurance incurred is $1000 CND

Domestic Transport incurred is $1000 CND

Selling Commission paid =$2000 CND

Special Packing incurred = $2000 CND

Custom duty is a kind of an indirect tax that is imposed on both exported and imported goods and services. ... The government charges these taxes during the export or import of goods and services to raise money and/or to shield the domestic establishments from the competitors from other countries.

Now the Amount to which custom duty is levied is adding up the above charges including actual value goods,Insurance ,Commission , shipment ,

That is $100,000+ $2000+$1000+$1000+$1000+$2000+$2000= $109,000

Now the rate of custom duty is 10 percent hence

10% of $109,000 = $10,900

Now we have 5 % GST rate and amount of custom duty is also liable to be taxed so now total value to be taxed is $109,000+$10900= $119,900

So GST amount = 5% of $119,900 = $5995 CND.