4% sad claim in case of free of cost sales

1125 views 2 replies

Ashish

accounts

37 Points Posted on 27 June 2012

Dear All,

We are importing Plasma Televisions and selling in domestic market.

While importing we are paying 4% SAD on plasma television as well as other accessories like remote control,set top box etc.

When we are selling we are selling plasma television with price+tax but we are selling accessories as free of cost.

So, As we selling accessories free of cost i.e. without charging sales tax.. we are not able to claim SAD refund paid while

importing.

Can we sell those accessories at Rs.1 per unit and claim refund of special addl duty .

Replies (2)

SUNIL VARPE

PROPRIETOR

37 Points Posted on 13 October 2012

Dear sir,

The basic criteria for the refund is you can claim the SAD refund it you are paying sales tax against your sale in india. In case of accessories you are unable to prove that you are paying sales tax against your sale of accessories. So it is not possible to get the SAD refund.

Rama Krishnan

MBA

571 Points Posted on 15 October 2012

I THINK PRINCIPALLY THERE IS SOMETHING WRONG.

1.WHEN YOU ARE IMPORTING PLASTIV TV WITH ACCESSORIES, YOU NEED NOT HAVE TO CLASSIFY PLASMA AND ACCESSORIES SEPERATELY IN CUSTOMS.

2. YOU NEED TO HAVE SINGLE VALUE FOR BOTH PLASMA AND ACCESORIES AND CLASSIFY THE SAME UNDER HSN 8528 72 19

3. ENSURE MRP IS PASTED ON EACH BOX AND TAKE SAD EXEMPTION AT THE TIME OF IMPORT ITSELF AVAILABLE UNDER CUSTOMS NOTIFICATION NO 21/2012 SR 2.( PROVIDED THE GOODS ARE INDENTED FOR RETAIL SALE)

4. NO NEED TO APPLY AND GET REFUND