Your Total Savings ₹50000 Why is Countervailing Duty imposed?
CVD is imposed to protect domestic industries from unfair competition.
Who imposes Countervailing Duty?
In most countries, the government imposes Countervailing Duty through customs authorities based on investigations by trade regulatory bodies.
How is Countervailing Duty different from Anti-Dumping Duty?
Countervailing Duty is imposed to counteract foreign government subsidies that make imported goods cheaper than domestic goods while Anti-Dumping Duty is imposed to prevent foreign exporters from selling goods at below market value or dumping them in the domestic market at unfairly low prices. Both duties aim to protect domestic industries but address different types of unfair trade practices.
What is the legal basis for imposing countervailing duty in India?
In India, Countervailing Duty is imposed under the Customs Tariff Act, 1975.
Is Countervailing duty an indirect tax?
Yes, it is an indirect tax.