Custom Set off

This query is : Resolved

Shashank Kotak (Querist)
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03 July 2011 Dear all,

kindly inform me the taxes against which custom duty paid by the assessee can be set off specially for manufacturer importing raw materials and also capital goods.

U S Sharma

U S Sharma (Expert)
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03 July 2011 CVD+ Edu Cess+ Secondary Edu cess is cenvatable under excise,

SAD is refundable if imported goods are sold after charging vat or cst.

Mukesh Chhangani

Mukesh Chhangani (Expert)
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07 July 2011 You can get cenvat credit of Additional custom duty (ACD) (in lieu of excise duty on the same product if manufactured in India,) payable under section 3(1) of customs Act alongwith education cess and SAH paid on ACD. the importer is also required to pay 4% Special additional Duty (SAD) in lieu of sales tax. The manufacturer can claim cenvat credit on both of the taxes. He can claim Cenvat credit for purchase of materials as well as purchase of capital goods. In case of of purchase of capital goods he can claim cenvat credit maximum 50% in first year and balance in subsequent years.

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