Understanding Socks HSN Code: A Comprehensive Guide
Socks are a common item of clothing that we wear almost every day. From sports socks to dress socks, there are different types of socks available in the market. But have you ever wondered how socks are classified for tax purposes? The answer lies in the Harmonized System of Nomenclature (HSN) code. In this blog, we will discuss the socks HSN code in detail.
What is HSN Code?
HSN code is a system of classification that is used to classify goods for tax purposes. It is a six-digit code that is used to identify the goods and their tax rates. HSN code is used in more than 200 countries worldwide.
What is Socks HSN Code?
The socks HSN code is 6115. This code is used to classify all types of socks, including sports socks, dress socks, ankle socks, knee-high socks, etc. The socks HSN code is classified under Chapter 61 of the HSN code, which deals with articles of apparel and clothing accessories.
HSN Code for Different Types of Socks
As mentioned earlier, there are different types of socks available in the market, and each type is classified under the socks HSN code. Let’s take a look at the HSN code for different types of socks:
- Sports Socks: The HSN code for sports socks is 6115 95.
- Dress Socks: The HSN code for dress socks is 6115 95.
- Ankle Socks: The HSN code for ankle socks is 6115 95.
- Knee-High Socks: The HSN code for knee-high socks is 6115 95.
- Compression Socks: The HSN code for compression socks is 6115 20.
How is Socks HSN Code Used?
The socks HSN code is used by businesses that manufacture or import socks. It is used to determine the tax rate applicable to socks. The HSN code is also used by customs officials to determine the correct duty to be paid on imported socks.
Apart from tax purposes, the HSN code for socks is also used for trade statistics and customs purposes. By using the HSN code, trade data can be easily analyzed, and trade policies can be formulated accordingly.
It is important for businesses to classify their socks accurately under the socks HSN code to avoid any discrepancies during customs clearance. Incorrect classification may result in the imposition of additional duties and penalties.
In addition to the six-digit HSN code, there is also an eight-digit HSN code known as the Indian Trade Clarification (ITC) code. The ITC code is used in India to classify goods for import and export purposes. The ITC code for socks is 61159600.
Conclusion
In conclusion, understanding the socks HSN code is important for businesses involved in the manufacture or import of socks. It is a key classification system used for tax purposes, trade statistics, and customs purposes. By using the correct HSN code for socks, businesses can ensure smooth customs clearance and avoid any penalties.
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Frequently Asked Questions (FAQs)
What is the socks HSN code, and how is it used?
The socks HSN code is 6115, and it is used to classify socks for tax purposes, trade statistics, and customs purposes.
Are different types of socks classified under different HSN codes?
Yes, different types of socks, such as sports socks, dress socks, ankle socks, knee-high socks, and compression socks, are classified under different HSN codes.
Why is it important for businesses to classify socks accurately under the socks HSN code?
It is important for businesses to classify socks accurately under the socks HSN code to avoid any discrepancies during customs clearance, which may result in the imposition of additional duties and penalties.
Can the socks HSN code vary from country to country?
Yes, the HSN code can vary from country to country, but the six-digit code is generally the same worldwide.
Is the socks HSN code the same as the Indian Trade Clarification (ITC) code?
No, the socks HSN code and the ITC code are different, but they are both used to classify goods for import and export purposes.
What is the ITC code for socks in India?
The ITC code for socks in India is 61159600.
Are socks considered apparel or clothing accessories?
Socks are considered apparel and fall under Chapter 61 of the HSN code, which deals with articles of apparel and clothing accessories.
What is the tax rate applicable to socks?
The tax rate applicable to socks may vary from country to country, and it depends on the classification of the socks under the HSN code.
Do businesses need to pay tax on imported socks?
Yes, businesses need to pay tax on imported socks based on the HSN code classification and the applicable tax rate.
Can businesses face penalties for incorrect classification of socks under the HSN code?
Yes, businesses can face penalties for incorrect classification of socks under the HSN code, which can lead to additional duties and taxes.
