CSS Customs Group

Tuesday, June 7, 2011, 11:09
CSS, Test Prep
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The Customs Group consists of three different categories of duties and taxes, namely, (1) Customs Duty, (2) Central Excise Duty, and (3) Sales Tax.

Customs service is divided into three major areas of trade activities viz (a) Imports, (b) Exports, and (c) Anti-Smuggling (Preventive) imports is the backbone of customs service which involves payment of customs duty on all the imports into the country. Exports are related with foreign exchange earnings and implementation of Exports Policy. Preventive department deals with anti-smuggling activities focusing mainly on prevention of drug smuggling.

Central Excise service is shrinking day by day. It is now an outdated mode of revenue collection Central Excise Duty is leviable on a few items. With the passage of time it is likely to be diminished.

Sales Tax is the tax of future. It is based upon VAT (Value Added Tax) mode of taxation system. It has been successfully implemented all over the world. Presently, the Sales Tax wing is collecting the largest share of revenue collected by CBR (Central Board of Revenue). It is a growing and expanding service The Sales Tax Act was passed in 1990.

All these three services are under the process of TAX REFORMS. A new vision of revenue collection and reforms has transformed the Customs, Excise and Sales Tax group into a service of the future. By introduction of LARGE TAX PAYERS UNIT and MODEL SALES TAX HOUSE, the Customs, Excise and Sales Tax group has become an agent of change. It is now the most modern, high-tech and forward looking service of the country.