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Countervailing Duty

An additional import duty imposed to offset subsidies and concessions granted by exporting countries to their exporters. It aims to make the imported price equal to the true market price and create a level playing field for domestic producers. A cascading tax is applied at every stage of supply without deducting prior taxes paid, distorting markets and incentivizing vertical integration. It has been replaced by value-added tax. Transfer pricing is the assumed internal price charged between company divisions to separately calculate profits and losses.

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37 views

Countervailing Duty

An additional import duty imposed to offset subsidies and concessions granted by exporting countries to their exporters. It aims to make the imported price equal to the true market price and create a level playing field for domestic producers. A cascading tax is applied at every stage of supply without deducting prior taxes paid, distorting markets and incentivizing vertical integration. It has been replaced by value-added tax. Transfer pricing is the assumed internal price charged between company divisions to separately calculate profits and losses.

Uploaded by

apaulchoudhury
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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countervailing duty

Definition
Additional import duty imposed to offset the effect ofconcessions and subsidies granted by an exporting country to its exporters. Imposition of a countervailing duty is an attempt to bring the imported price to its true market price, and thus provides a level playing field to the importingcountry's producers. See also anti-dumping duty.

Cascade tax
From Wikipedia, the free encyclopedia A cascade tax or cascading tax is a turnover tax that is applied at every stage in the supply chain, without any deduction for the tax paid at earlier stages. Such taxes are distorting in that they create an artificial incentive for vertical integration.[1]They have been replaced in Europe and many other locations by a value added tax.

transfer pricing
Definition
The price that is assumed to have been charged by one part of a company for products and services it provides to another part of the same company, in order to calculate each division's profit and loss separately.

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