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Set off of special additional duty

This query is : Resolved 

24 June 2013 can an importer of computer hardware who repackages and resells in indian market take set off of SAD paid on import against domestic service tax liability being computer advisory services ?

It registered under central excise after 6 months of importing these goods. (It does not have any excise liability as its turnover is less than 1.5 crores.)

regards, ca kunjan shah, 9820750784, www.nsc.in


26 June 2013 As per CCR, 2004, SAD in lieu of sales tax/vat paid on capital goods or on materials shall not be allowed as cenvat credit in the hands of service provider to set-off against output service tax. It is allowed only to manufacturers paying excise duty.


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