Sed refund
This query is : Resolved
RAMESH KUMAR VERMA
(Expert)
03 February 2012
link is:
https://indiatax.wordpress.com/2008/04/29/procedure-for-claiming-refund-of-4-per-cent-sad-on-imports/
https://www.eximguru.com/notifications/regarding-refund-of-4-additional-22403.aspx
https://www.jawaharcustoms.gov.in/newsite/refund/procedure.asp
https://indiatax.wordpress.com/2008/04/29/procedure-for-claiming-refund-of-4-per-cent-sad-on-imports/
https://www.eximguru.com/notifications/regarding-refund-of-4-additional-22403.aspx
https://www.jawaharcustoms.gov.in/newsite/refund/procedure.asp
03 February 2012
Dear Sir
Thankyou for you details
could you help in below
i informed the same what you have informed but noe the quiry is turned it to as mentioned below could younhelp in this? please
Seafarer's tax refund. Claim your SED
Thankyou for you details
could you help in below
i informed the same what you have informed but noe the quiry is turned it to as mentioned below could younhelp in this? please
Seafarer's tax refund. Claim your SED
23 July 2025
Ah, it looks like there's **confusion between two different types of "SED refund"** here. Let's clarify both possibilities to help you:
---
### 🔹 1. **SAD/SED Refund (Special Additional Duty Refund) – Customs**
This applies **to importers** who paid **4% Special Additional Duty (SAD/SED)** under customs while importing goods into India.
* **What is it?**
A refund mechanism under Notification No. 102/2007-Customs dated 14.09.2007, where importers can claim back the 4% SAD paid on imported goods **when sold locally** upon fulfilling certain documentation.
* **Relevant For:**
Importers (not related to seafarers).
* **Refund Claim Includes:**
* TR6 challan (duty paid proof)
* Bill of entry
* Invoices of subsequent sale
* CA certificate
* Affidavit of non-CENVAT credit availed
* Other documents per customs manual
---
### 🔹 2. **Seafarer's Tax Refund / SED**
This appears to be **unrelated to customs** and **more likely refers to foreign tax relief** or **Special Exemption Deductions** available to **seafarers** earning outside India.
* **What is it?**
Seafarers, who qualify as **Non-Residents (NR)** under **Section 6 of Income Tax Act**, may claim **income earned outside India (on foreign ships) as tax-exempt** under the Indian Income Tax Act.
* **Key Points:**
* If a seafarer spends **183 days or more outside India** (as per CDC/stamped passport), they qualify as **NR**.
* In such case, **foreign income is not taxable** in India.
* It's not a "refund" in the classical sense, but **non-taxable treatment** of income.
---
### ✅ What To Do Next?
If the question is about:
* **Import duties:** Follow SAD refund procedures under Indian Customs Act.
* **Seafarer income:** Ensure NR status is clearly established and then claim **exemption under Indian IT Act** when filing returns.
---
### 📌 Final Clarification
* **"SED"** for **seafarers** is **not an official Indian tax term**.
* Likely, they refer to **Seafarer's Exempted Deductions** or **a general tax refund** claimed from other jurisdictions (like UK, Norway, etc.) under double tax treaties.
If you're dealing with a **specific seafarer's case**, please share:
* Whether income is from foreign shipping company
* Number of days outside India
* Nature of tax paid (in India or abroad)
I can then guide you precisely on **how to file returns and claim refund/exemption**.
---
### 🔹 1. **SAD/SED Refund (Special Additional Duty Refund) – Customs**
This applies **to importers** who paid **4% Special Additional Duty (SAD/SED)** under customs while importing goods into India.
* **What is it?**
A refund mechanism under Notification No. 102/2007-Customs dated 14.09.2007, where importers can claim back the 4% SAD paid on imported goods **when sold locally** upon fulfilling certain documentation.
* **Relevant For:**
Importers (not related to seafarers).
* **Refund Claim Includes:**
* TR6 challan (duty paid proof)
* Bill of entry
* Invoices of subsequent sale
* CA certificate
* Affidavit of non-CENVAT credit availed
* Other documents per customs manual
---
### 🔹 2. **Seafarer's Tax Refund / SED**
This appears to be **unrelated to customs** and **more likely refers to foreign tax relief** or **Special Exemption Deductions** available to **seafarers** earning outside India.
* **What is it?**
Seafarers, who qualify as **Non-Residents (NR)** under **Section 6 of Income Tax Act**, may claim **income earned outside India (on foreign ships) as tax-exempt** under the Indian Income Tax Act.
* **Key Points:**
* If a seafarer spends **183 days or more outside India** (as per CDC/stamped passport), they qualify as **NR**.
* In such case, **foreign income is not taxable** in India.
* It's not a "refund" in the classical sense, but **non-taxable treatment** of income.
---
### ✅ What To Do Next?
If the question is about:
* **Import duties:** Follow SAD refund procedures under Indian Customs Act.
* **Seafarer income:** Ensure NR status is clearly established and then claim **exemption under Indian IT Act** when filing returns.
---
### 📌 Final Clarification
* **"SED"** for **seafarers** is **not an official Indian tax term**.
* Likely, they refer to **Seafarer's Exempted Deductions** or **a general tax refund** claimed from other jurisdictions (like UK, Norway, etc.) under double tax treaties.
If you're dealing with a **specific seafarer's case**, please share:
* Whether income is from foreign shipping company
* Number of days outside India
* Nature of tax paid (in India or abroad)
I can then guide you precisely on **how to file returns and claim refund/exemption**.
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