CVD

879 views 3 replies

Alok Kumar

Assistant Manager

32 Points Joined December 2009

Case study,

A company has purchased computers from a vendor in india, the vendor charges for the computer & levies Counterveiling duty on the goods & VAT.

Question here is, is it possible to charge CVD by a domestic vendor. The vendor has actually imported the goods from outside india.

what would have been the case, if the company is a STPI unit?

Regards,

CA. Alok Kumar

Replies (3)

Ram Avtar Singh

Nagari Sultanpur U.P.Delhi

15155 Points Joined March 2007

any Items Import purchase from out side india will be Taxable in India. vat /cst will be charge on the same. if Highseas sale then no sates tax applicable.

ca manoj rathi

152 Points Joined December 2009

pls give d answr also...u hav confused me also

RAMESH KUMAR VERMA

CS PURSUING

43853 Points Joined December 2009

MR. ALOK JI, Assume, if you are general importer not STP/EOU unit &, import / purchase any goods even computer & when sold this items in Indian market, & paid C.V.D. And any other duty at the time of import, your obligation will THAT realization the all the taxes from the buyer. AND AS PER FOREIGN TRADE POLICY 2009-2014, WHENEVER WE IMPORT / PURCHASE THE MENTIONED ITEMS FROM OUT SIDE INDIA WILL BE TAXABLE IN INDIA. AND VAT /CST WILL BE CHARGE ON THE SAME. AS PER FOREIGN TRADE POLICY:- STP UNITS CAN AVAIL OF FOLLOWING ADVANTAGES UNDER STP SCHEME: • CUSTOM DUTY EXEMPTION • EXCISE DUTY EXEMPTION • CENTRAL SALES TAX REIMBURSEMENT • CORPORATE TAX EXEMPTION ON 90% EXPORT TURNOVER AS PER SECTION 10A OF INCOME TAX ACT. • SALES IN DOMESTIC TARIFF AREA (DTA) UPTO 50% OF THE FOB VALUE OF EXPORTS PERMISSIBLE. REGARDING THIS, HAVE YOU ANY QUERY, CONTACT US THROUGH CA FRIENDS CLAUB, WE REMAIN YOU, REGARDS, RAMESH KUMAR VERMA