Foreign Exchange -Conversion Rate - CBEC overvalues YEN by a Hundred Times
CBEC has issued a notification yesterday determining the rate of exchange of conversion for the Japanese YEN.
As per the notification,the rate of exchange for one unit of foreign currency equivalent to Indian rupees for Japanese YEN for Import would be Rs. 55.20 and for export, it would be Rs. 53.90
According to RBI, the rate of exchange of one YEN as on 17th December is Rs. 0.5434. So, the Board's rate is over hundred times more than the RBI rate. This means if you are importing one crore YEN worth of goods from Japan, according to the Board, the value in Indian rupees would be 55.2 crores, whereas the RBI value would be Rs. 54.34 lakhs. And if you have to pay a 5 percent duty on those goods, Board will like to have Rs. 2.76 Crores as duty while the value of the goods is only 54 lakhs!
Where did the Board bungle?
They have amended Notification No. 113/2014-CUSTOMS (N.T.) dated 4th December, 2014, Schedule-II, Sl. No.1. This prior to the amendment read as: