One of our customer has already got the consignment at their port.
They are making the custom duty payment now, as the procedure using the Advance licence may delay the clearing process and the consignemtn is required by them urgently.
In such cases can they take the a credit at a later date for the custom duty amount paid now against the advance licence.
Shall await a quick reply.
An advance licence is granted for the import of inputs without payment of basic customs duty. Such licences shall be issued in accordance with the policy and procedure in force on the date of issue of the licence and shall be subject to the fulfillment of a time-bound export obligation, and value addition as maybe specified. Advance licences maybe either value based or quantity based.
As per the latest amendments to the EXIM Policy, the facility of Back to Back Inland Letter of Credit has been introduced, to enable an Advance Licence holder to source his inputs from domestic suppliers.
FOR MORE INFORMATION:
https://www.eximguru.com/exim-procedures/2009-2014/chapter_4_duty_exemption_remission_scheme.aspx
No, Anyway their are other ways to take the credit.
BHUPINDER SHAH AND COMPANY
New Delhi
CA Inter
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Boutique Investment Bank & Transaction Advisory Firm
Gurgaon
CA
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