Sad 4% return
This query is : Resolved
Siddhi Nath Chaturvedi
(Querist)
27 December 2011
Dear Sir,
Please let me know what is the process of SAD 4% return on imported material while we have sell the material on DTA after paying applicable VAT/CST.
Please let me know what is the process of SAD 4% return on imported material while we have sell the material on DTA after paying applicable VAT/CST.
RAMESH KUMAR VERMA
(Expert)
29 December 2011
AS PER NOTIFICATION ISSUED BY CBEC ABOUT SAD REFUND NO.102/2007 DTD 14.09.2007
FOR MORE INFO:
https://www.jawaharcustoms.gov.in/newsite/refund/procedure.asp
A special additional duty (SAD) of Customs of 4% has been levied on all imports by the Budget 2006-2007. As no central sales tax or VAT is levied on imports, the levy of SAD is intended to create a level playing field for domestic goods vis--vis imports. However, this fairly innocuous-intentioned move has a number of anomalies and contradictions.
A manufacturer of excisable goods is permitted to utilise the SAD paid on imported goods as a credit against its excise duty liability. Therefore, SAD is not a cost for a manufacturer and as such does not operate as a countervailing tax.
However, such credit is not available to a service provider or any person engaged in other activities that do not attract excise duty such as mining, power generation and construction. An importer-trader, who imports and sells goods in India upon payment of CST/VAT, had to first pay SAD, and then CST/VAT on sale of the imported goods.
In a nutshell, until recently, the tax was countervailing for a service provider and someone engaged in mining, construction, etc, but not for a manufacturer. For a trader, rather than being countervailing, levy of SAD results in double taxation.
FOR MORE INFO:
https://www.jawaharcustoms.gov.in/newsite/refund/procedure.asp
A special additional duty (SAD) of Customs of 4% has been levied on all imports by the Budget 2006-2007. As no central sales tax or VAT is levied on imports, the levy of SAD is intended to create a level playing field for domestic goods vis--vis imports. However, this fairly innocuous-intentioned move has a number of anomalies and contradictions.
A manufacturer of excisable goods is permitted to utilise the SAD paid on imported goods as a credit against its excise duty liability. Therefore, SAD is not a cost for a manufacturer and as such does not operate as a countervailing tax.
However, such credit is not available to a service provider or any person engaged in other activities that do not attract excise duty such as mining, power generation and construction. An importer-trader, who imports and sells goods in India upon payment of CST/VAT, had to first pay SAD, and then CST/VAT on sale of the imported goods.
In a nutshell, until recently, the tax was countervailing for a service provider and someone engaged in mining, construction, etc, but not for a manufacturer. For a trader, rather than being countervailing, levy of SAD results in double taxation.
Message likes :
1 times
Siddhi Nath Chaturvedi
(Querist)
29 December 2011
Sir
Actually we have imported the material then now we are saling the material on DTA after paying aplicable Excise duty. but some case we are also purchase the material from India that case we are doing adjustment.can we apply for SAD 4% return plesae advice.
Regards,
Siddhi Nath Chaturvedi
Mob No. 09603118539
Actually we have imported the material then now we are saling the material on DTA after paying aplicable Excise duty. but some case we are also purchase the material from India that case we are doing adjustment.can we apply for SAD 4% return plesae advice.
Regards,
Siddhi Nath Chaturvedi
Mob No. 09603118539
RAMESH KUMAR VERMA
(Expert)
30 December 2011
do not care, apply for sad refund.
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
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- 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
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
