Pass on of ec, shec

Hi,

I had a question regarding the pass on of EC, SHEC in case on import of material. 

We import chemicals that are used as raw materials in the maufacture of rubber products. When material is imported we pay basic customs duty (BCD), Counterviling duty (CVD), EC and SHEC (computed on BCD+CVD) and finally Additional duty (SAD). Now SAD and CVD can be passed on to our customers but BCD cannot so BCD forms a part of our costing. I wanted to know if EC, SHEC can be passed on to our customers or should it be included in our costing like BCD. Any help in this regard will be highly appreciated. TIA!  

 

Replies (2)
Cess is a cost like BCD in case of imports. It cannot be passed on, no credit available
no no credit can be claimed on BCD EC and SHEC only on CVD and SAD credit can be claimed

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