Re: Import of Musical Instruments in India

Hi,

I own and operate a small business in New Delhi whereby I import and sell musical instruments to businesses and directly to customers. I also host and organize music clinics and music shows and provide music consultation services.

A) Musical Instruments

The current base import duty rate on musical instruments is 10% and after applying Counter Vailing Duty (CVD) and other slabs, the total import duty imposed is approximately 29.5%. The Delhi VAT rate applicable is 12.5%.

Under CST, musical instruments will be taxed at 28%.

Question 1 – What would be the total tax burden (in USD) on me to import a product worth $100, on which shipping paid is $10?

Question 2 – Currently, if I need to sell a product to a Delhi based business, all I need to do is acquire the business’s VAT No. and issue a tax invoice. Similarly, if I need to buy a product from a Delhi based business I need to provide my VAT number to the supplier and can later avail the credit. Interstate purchases and sales are done using C-Forms
How would local and interstate sales and purchases work under GST?

B) Entertainment Tax

Currently for hosting and organizing events, different rate of Entertainment Tax is applicable in different states.

Question – What would be the applicable rate(s) of entertainment tax under GST?

C) Music Consultation Services

Question – What would be the applicable rate of tax on music consultation services?

Any help provided will be much appreciated.

Thanks, Sanyam