Our indirect tax advisory helps importers, exporters and multinational groups manage customs duty, related-party valuation (SVB), Foreign Trade Policy incentives, excise and VAT on non-GST goods, and legacy tax disputes, so your supply chain stays compliant and cost-efficient.
Since 1 July 2017, GST has replaced most central and state indirect taxes, including service tax, most central excise, VAT, CST and entry tax. But several important indirect taxes still sit outside GST.
| Tax | What it covers today | Levied by |
|---|---|---|
| Goods and Services Tax (GST) | Most supplies of goods and services. See our GST services | Centre and states |
| Customs duty | Basic customs duty, IGST and cesses on imports; duties on certain exports | Central Government |
| Central excise | Specified petroleum products and tobacco products | Central Government |
| State VAT / sales tax | Alcoholic liquor for human consumption and specified petroleum products | State Governments |
| Legacy laws | Pending service tax, excise, VAT and CST assessments, appeals and refunds for the pre-GST period | Centre and states |
Long, cross-border supply chains make these taxes hard to manage. Our indirect tax professionals help you stay compliant and make your supply chain tax-efficient.
The Special Valuation Branch is a unit of Indian Customs that examines the valuation of goods imported between related parties.
Under Section 14 of the Customs Act, 1962, customs duty is levied on the transaction value of imported goods. When the Indian importer and the foreign supplier are related, for example as subsidiary and parent, the price may be influenced by that relationship. If goods are imported below normal market value, less duty is paid. The SVB's role is to check whether the relationship has affected the invoice value.
The Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 require importers to declare relevant information in the bill of entry, on the basis of which duty is assessed. Related-party transactions also involve sole agents, sole distributors and arrangements such as collaboration, technical know-how, licensing and joint venture agreements with the foreign supplier. Royalties and licence fees connected with imported goods may need to be added to the customs value.
Customs valuation and transfer pricing look at the same related-party prices from opposite directions, so a year-end TP adjustment can affect the customs value. We review both together to avoid surprises.
Under Rule 2(2) of the Customs Valuation Rules, an importer and supplier are treated as related if, among other things:
Sole agents, sole distributors and sole concessionaires may also be treated as related if they meet these criteria. Indian subsidiaries of foreign groups that import from group companies should review their position.
We map imports, exports, related-party arrangements and existing registrations.
We check classification, valuation, FTA eligibility, incentives and open disputes.
We recommend duty-efficient structures and prepare agreements, declarations and certificates.
We handle IEC, SVB, FTP authorisations, returns and refund claims.
We respond to queries, audits and show cause notices, and appear in appeals.
We track tariff, FTP and procedural changes and update your compliance.
Share your import and export flows with our indirect tax team. We will flag duty risks and savings, at no cost and with no obligation.
Book a Free Indirect Tax ConsultationTell us about your import, export or tax matter. We usually respond within one business day.
