Refund 4% additional import duty against sales tax
This query is : Resolved
15 September 2012
we are traders, importing material on which we are paying additional import duty (S.A.D.) of 4%, apart from basic duty (10%) and CVD (12%).
We resell these goods, without modification, to our customers who are users. Some of them avail CENVAT benefit of the CVD+Additional duty amount. However, most of them do not avail this refund.
I charge my customers appropriate VAT/CST sales tax amount on invoiced price.
Can i avail refund of the 4% additional duty against the VAT/CST sales tax amounts that i am filing in my returns?
If so, what would be the procedure.
Or is there any other way in which i can get refund benefit of this 4% S.A.D. ?
TIA
We resell these goods, without modification, to our customers who are users. Some of them avail CENVAT benefit of the CVD+Additional duty amount. However, most of them do not avail this refund.
I charge my customers appropriate VAT/CST sales tax amount on invoiced price.
Can i avail refund of the 4% additional duty against the VAT/CST sales tax amounts that i am filing in my returns?
If so, what would be the procedure.
Or is there any other way in which i can get refund benefit of this 4% S.A.D. ?
TIA
CA CS Amit S. Kedia
(Expert)
15 September 2012
In my openion, set off of SAD against sales tax/Vat is not permissible since the amount of SAD goes to central govt(CBEC) and Sales tax is paid to state govt.
SAD is like inter state purchase and even department is separate from sales tax.
SAD is like inter state purchase and even department is separate from sales tax.
CA CS Amit S. Kedia
(Expert)
15 September 2012
Pls also read Notification No. 102/2007-Customs, there are detailed procedures for claiming refund
15 September 2012
Hi Amit,
Thanks for the quick reply. I did go thru the notification that you have mentioned above.
What i understand - there it says that if i am not passing on the CENVAT benefit of the additional 4% in my invoice to my customer, and that i am levying VAT/CST as applicable, i can file for refund of additional duty 4% with the jurisdictional custom officer
That is to say, i can claim refund of additional duty 4% from the customs officer
is my understanding correct?
Thanks for the quick reply. I did go thru the notification that you have mentioned above.
What i understand - there it says that if i am not passing on the CENVAT benefit of the additional 4% in my invoice to my customer, and that i am levying VAT/CST as applicable, i can file for refund of additional duty 4% with the jurisdictional custom officer
That is to say, i can claim refund of additional duty 4% from the customs officer
is my understanding correct?
CA CS Amit S. Kedia
(Expert)
15 September 2012
Yes.. you are correct.
You will have to collect sales tax/Vat, as the case may be, on the invoice and the SAD should not be passed to the buyers.
In short, the trader shall sell the goods on retail basis and no credit of any duty under customs will be passed to the buyers.
The refund has to be claimed within a year from the payment of SAD.
There will be loads of documentation involved in this procedure
You will have to collect sales tax/Vat, as the case may be, on the invoice and the SAD should not be passed to the buyers.
In short, the trader shall sell the goods on retail basis and no credit of any duty under customs will be passed to the buyers.
The refund has to be claimed within a year from the payment of SAD.
There will be loads of documentation involved in this procedure
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- IMS (import of goods) ITC related
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Form 144 TDS Return Validation error
- LLP audit and disclosure
- GST ITC as per notification 12/2023- central tax
- Form 144 TDS Return Validation Error – Mandatory Fields
- Capital Gains Tax on Inherited Mutual Fund
- Rent agreement of House of deceased person
- Ito add credit side of bank
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
