Hi, I am from a China firm and found this website online. I love this place and if you have question relating to PRC tax, I would like to answer.
My issue:
My client is a foreign subsidiry in India, who import goods from China. We have learned that when import goods, BCD, CVD and SAD will be leived. And if the importer undertake excise dealer registeration, it can pass the CVD and SAD to the Customers.
My understanding is that:
1. My understanding is that CVD is equal and similar to excise duty, and SAD is equal and simlar to VAT.
2. Therefore, if the importer pays BCD + CVD +SAD, and sell the goods to a customer. The importer could get excise dealer registration, and by doing so, the CVD and SAD credit can be passed to the customer. If the customer need to pay excise duty or VAT in the future, he can use the CVD and SAD to credit.
Please confirm whether my understanding is correct.
3. Meanwhile, I also heard that the SAD can be claimed refund if certain conditions are met. Anyone can inform me what conditions should be met to get the refund.
Thanks and best regards!!
Voice Liu
CAclubindia
