Custom duty and vat
This query is : Resolved
13 September 2012
Sir,
I am working in Autonomous institute under Govt. of Inda. Institute is exempted for paying Customs Duty and Excise Duty under 51/96 being a reaserch Institute.
Some of our vendor has quoted imported item in rupees and insisting to issue CDEC certificate and also to pay the VAT.
They said that we have to pay VAT as sale is happening in india.
Kindly guide us whether we have to give both CDEC and VAT.
I am working in Autonomous institute under Govt. of Inda. Institute is exempted for paying Customs Duty and Excise Duty under 51/96 being a reaserch Institute.
Some of our vendor has quoted imported item in rupees and insisting to issue CDEC certificate and also to pay the VAT.
They said that we have to pay VAT as sale is happening in india.
Kindly guide us whether we have to give both CDEC and VAT.
13 September 2012
Dear Vipin
Reserch Institutions are exempted from payment of Excise duty on domestic purchases and on imports, exmempted from payment of customs duties. This notification is also applicable when you are importing direclty and when one of your contracter imports for delivery to your institutions. So your contracter can import and sell you in Rupees.
Vat exemption will be applicable only when you have obtained a certificate from Sales tax Dept, otherwise you need to pay VAT.
Notification no 51/96 exempt is reserch institutions
Reserch Institutions are exempted from payment of Excise duty on domestic purchases and on imports, exmempted from payment of customs duties. This notification is also applicable when you are importing direclty and when one of your contracter imports for delivery to your institutions. So your contracter can import and sell you in Rupees.
Vat exemption will be applicable only when you have obtained a certificate from Sales tax Dept, otherwise you need to pay VAT.
Notification no 51/96 exempt is reserch institutions
13 September 2012
Dear Rama Sir,
in my case vendor is asking to place an order in india in Indian Ruppee + hence he charging the VAT and also he want to issue CDEC certificate.
Can we issue the CDEC certificate to them?
My office has stand that we can issue either CDEC or pay VAT. Not both. is it correct.
in my case vendor is asking to place an order in india in Indian Ruppee + hence he charging the VAT and also he want to issue CDEC certificate.
Can we issue the CDEC certificate to them?
My office has stand that we can issue either CDEC or pay VAT. Not both. is it correct.
14 September 2012
Dear Vipin,
CDEC is Customs duty exemption certificate is it right??? CDEC certificate exempt only customs duty on Imports, it does not exempt VAT. CDEC certificate has to be produced by your vender to customs at the time of availaing the customs duty benefit while import of goods.
If you have any VAT exemption certificate, pl provide the same to vender, then he will not charge VAT.
CDEC is Customs duty exemption certificate is it right??? CDEC certificate exempt only customs duty on Imports, it does not exempt VAT. CDEC certificate has to be produced by your vender to customs at the time of availaing the customs duty benefit while import of goods.
If you have any VAT exemption certificate, pl provide the same to vender, then he will not charge VAT.
14 September 2012
Dear Sir
Yes CDEC is Customes Duty Exemption Certificate which we produce to custom for exemption when we directly place an order to foreign company in foregin currency.
In this case I am not placing the order to foreign company instead I am placing order to Indian company.
However Indian company is saying they are importing from outside india and hence requesting us to issue CDEC.
Further they also charging VAT saying sine order is rupees they have to pay VAT also..
Kidnly clarify whether vendor is correct.
Yes CDEC is Customes Duty Exemption Certificate which we produce to custom for exemption when we directly place an order to foreign company in foregin currency.
In this case I am not placing the order to foreign company instead I am placing order to Indian company.
However Indian company is saying they are importing from outside india and hence requesting us to issue CDEC.
Further they also charging VAT saying sine order is rupees they have to pay VAT also..
Kidnly clarify whether vendor is correct.
14 September 2012
Dear Vipin,
In opinion it is correct. still do double check
CDEC has nothing to do with VAT, vender is just seeking the same beacuse he will import the same, take customs duty benefit based on your CDEC certificate, bill you in rupees.
Alternative options available to you for avoiding VAT payment are
1.you can import directly, in that case there won't be any VAT.
2. Let your vender import, then you purchase the same on High Sea Sales
2.
In opinion it is correct. still do double check
CDEC has nothing to do with VAT, vender is just seeking the same beacuse he will import the same, take customs duty benefit based on your CDEC certificate, bill you in rupees.
Alternative options available to you for avoiding VAT payment are
1.you can import directly, in that case there won't be any VAT.
2. Let your vender import, then you purchase the same on High Sea Sales
2.
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