Cenvat credit for imported goods

In your case, Importer can avail cenvat credit on CVD [Customs duty = excise duty 12.36% of (Basic value + BCD)] and

on Additional CVD ( = vat, subject to maximum of 4%, on BCD+CVD+Edu. & SHEC).

as regards credit taken against BCD:

any credit, wrongly taken/availed or eronuosely refunded must be reversed and if already taken then must be paid to revenue.

You can avail cenvat Credit on following elements

1) CVD 12%

2) Additional Duty 4%

Education Cess for CVD abolished with effect from 18/03/2012  (budget 2012).

If you taken wrong credit, reverse with interest @ 18% p.a

Dear Sir,

We are importers of steel finished products without any manufacturing. What are the credits we can take while selling to domestic traders & manufacturers in India

Regards

krishna kumar

The Importer can pass on the CENVAT Credit that is CVD @ 12%/ 6% and AED @ 4%.  If you cant pass on the credit to manufacturer, you can go for refund of AED @ 4%.

Why can't we take credit of cess as computed on CVD portion. i.e., 12% on Basic value and 3% on the resultant figure.  Is there any notification which bars from doing so??

Please advise.

          For this process we spent long time & also financial crisis is going on so, we have not pick material from warehouse, now we settled all process step-by-step. but sir, i don't have any idea about can we take cenvet duty in this month?

          sir, please suggest me that , (We would like to claim excise duty in this month because of next month cenvet rule will be change for 6 month only.)

Dear sir,

You can avail CVD & SAD as credit & utilize the same for payment of excise duty.

SAD cannot be utilized for payment of Service tax.

From 1.4.2012 onwards the GOI is not charging Cess on CVD hence the cess whatever they have charged is BCD cess which is not eligible for credit.

However if they are charging it is your CHA mistake . Kindly check with your CHA.

Regards

Venkat

I agreed with Mr.Venkat.

Further, you have to reverse the credit of BCD with interest.  You have to paid penalty also if the dept find out the wrong credit.

Thank you for the clarificvation Venkat.  The matter is constitutionally clarified in the letter / notice issued by Vivek Johri, Joint Secretary (TRU-1). Ref: D.O.F.No.334/ 3/2012-TRU, New Delhi, dated the 16th March, 2012.

We are eligible for availing Cenvat Credit only on 

CVD 12.5%
AED 4%

Dear Sir,  We are importing Power Supply Board from Singapore, Customs are charging BCD 10%, CVD 12.5% & AED 4%, Is it possible to avail BCD 10% since the BCD value is high.  Chapter No: is 85044090

Read more at: /forum/bcd-on-power-supply-board-380325.asp

No Credits on BCD, You have to claim CVD & Add. Duty.