Custom Duty credit

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This query is : Resolved

k (Querist)

05 October 2007 Whether credit of Custom Duty and Addl Duty paid on import of Capital goods which is used to in providing taxable service is available? If so, how much? In return, the details of Input Service Format, Reg no. is ask. So how to show the same in case available as credit?

Suresh Agrawal

Suresh Agrawal (Expert)

08 October 2007 The credit for customs duty and Addl duty on imported caital goods is NOT available under any provisions.
Credit for only the Countervailing Duty (CVD) is available.

k (Querist)

08 October 2007 ok Suresh in my case its CVD only but one more duty called addtional duty is there in the import bill. Whether the same is also available for credit? Both the duties are to be taken as credit 100% OR 50%?

Dayal

Dayal (Expert)

16 October 2007 Only corresponding CVD on imported goods on Capital goods is eligible for credit. However, basic custom duty is not available for credit.
, If you are referring to 4% additional duty, then the same is not available for credit to an output service provider ,Answering your second question Upto 50% credit is available in current financial year in which the goods have been received and balance 50% in subsequent financial year or years, provided the capital goods continue to be in your possession on the date of availment of the credit.