Cenvat credit against custom duty

1669 views 12 replies

Dear All,

I want to import some product from UAE. I want to sell them in India either directly or by repacking or mixing.

On the product following is the duty strutcuture:

Basic Cutom Duty - 10%, Education Cess- 2%, Secondary and Higher Edu. Cess- 1%

Countervailing Duty- 12%

Additional CVD- 4%.

 

The output excise application on this item is 10.36% (incl cess).

Please advise how much of the duty paid can be availed as set-off in Cenvat and what procedure will I have to adopt.

 

Thanks.

Replies (12)
If you are to do only trading yiu shoud get regietered as inportrt/first stagecdealer 8n excise you would only be able to pass the duty only cvd and addtiinal cvd would be passed on alon with cess applicabke
Cvd against excise and additional cvd against output vat can be claimed.
Credit of CVD N additional duty of custom can be taken. Basic custom duty n custom cess 3 per cent are to be expensed of

Being an importer, will I get any credit or only my customer will be able to obtain credit on excise.

Will I get any refund, if I am able to sell my goods within a year. I learnt from someone that I can claim refund on additonal CVD if sale is done within a year.

And if u r a manufacturer importing equipment used in production basic duty can be availed for set off

we are not a manufacturer, only trader.

Then you will get cenvat credit of Special additional duty u/s 3(5).

is special additional duty same as additional CVD?

 

Taxes                                Accounting As

custom duty                        Expenses

Custom Education Cess       Expenses

Excise Duty                         Input Credit

Excise Cess                        Input Credit

CVD                                   Input Credit

sir,

u can take centvat credit only on CVD paid sir.

regards.

p.r.ganesh

sir.

CVD Only eligible to claim Centvat Credit on imports 

with regards.

P.R.GANESH

sir,

u can take centvat credit only on CVD paid sir.

regards.

p.r.ganesh

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