4% sad exemption under notf. 021/2012

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Hiten Sachdev (Querist)
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27 December 2012 Sir,

I have a query whether the Builder who import goods for their projects complying the Legal Metrology Act 2009, except for the material imported is to be used in their projects which they are ultimately going to sell to their customers.

Are they eligible for the said exemption in 021/2012, coz they pay VAT on the Flats that they sell to their customers.

And if they are Eligible for getting the Exemption of the SAD, what is the argument that we can make for this.

Kindly guide me on the same, the sooner will be a blessing for me.

Thanks & Regards,
HITEN SACHDEV

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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31 December 2012 refer to Notification No.12/2012-Service Tax Builder are not exemption from SAD.

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Hiten Sachdev

Hiten Sachdev (Querist)
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02 January 2013 Sir,

Happy New Year! and Thanks for Your Reply.

But still the it is unclear whether the Builder should get SAD Benefit on Customs Duty at the time of Importation. It is that he pays VAT on sale of his Flats.

Kindly give me a simple language explanation as I have been in searching for the Solution for quite a Long time Now, but still not getting one.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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02 January 2013 it seems that you could not read the said notification?

Hiten Sachdev

Hiten Sachdev (Querist)
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02 January 2013 No, Sir I have read the Notification, But seems to find no solution in regards to my query. If you could just give an insight for the same. Point No. 20 indicates that "all new Constructions".

But Sir, My query corelates to VAT, I may be able t link ST with VAT, But I want to know whether the Builder can take 4% SAD Benefit for Import of Goods as Per Customs Notification 021/2012 and as he Pays VAT Composition of Construction Cost that includes Material too.

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