Refund of Addl. customs duty

2313 views 10 replies

RAJU

LEARNER

1089 Points Joined November 2008

Dear Members,

As per Notification No.102/2007-Customs dated 14-09-2007, an importer is eligible to claim refund on sale of such goods.

However, as per the clarifications given a certificate from CA needs to be furnished wherein the CA has to ensure satisfaction that credit is not passed on to the buyer for which the importer is claiming refund. It is also said that the intention of the Government is not to allow the importer to recover customs from the buyer and to claim the refund from Customs.

In the sale invoice, value will be shown inclusive of profit etc., Hence, the importer will always justify that the value is not inclusive of duty but profit is added to the basic purchase value.

In view of above, I would like to know whether ensuring that the credit is not passed on to the buyer (by verifying the invoice) will be sufficient for CA before the certifying the refund amount.

Regards

Dharmaraju

Replies (10)

CA Mayur in Deloitte

CA b.com rank holder

125 Points Joined June 2009

wEll CA is right in givin that certificate since , if the buyer has passed on the duty, he will specifically mention in invoice or so, u canot presume its included in margin,,,

disclaimer: given by best of my knowledge

ASHOKKUMARSAINI

partner

63 Points Joined July 2009

he has to clearly mention in ivoice that no credit hasbeen passed hs has to pre fix a stmp on invoice stating "NO CREDIT OF ADDITIONAL DUTY SHALL BE ADMISSIBLE" on each and every invoice .

sendhil

HIC AGENT

22 Points Joined June 2009

Can u suggest how to get the TR challan copy from customs duplicate since i have loosed we are claiming the Additional customs of duty for sold goods .

Regards

Sendhil

DKJ

Manager

29 Points Joined February 2010

For getting SAD Refunds , contact 9810092750

Bisesh Bibu Acharya

Article Assistant

30 Points Joined May 2010

Can we claim refund of Special Additional Custom Duty if the value of CST + VAT is less than the value of Additional Custom Duty ...? Its urgent for me to claim refund of a party.

Bisesh Bibu Acharya

Article Assistant

30 Points Joined May 2010

Please provide me the answer if you have in this regard....

Shantanu Kaushik

accountant

30 Points Joined November 2009

Dear Bisesh

Yes, u can claim the SAD even if ur sale tax is lesser then ur SAD amount, because as per the notification:

The importer shall file a refund claim for 4% CVD (“said additional duty of Customs”) paid on imported goods and shall pay on sale of the said goods “appropriate Sales Tax or VAT as the case may be”. Hence, it is clear that there is no stipulation in the notification that the exemption is available only if the rate of ST/VAT is equal to or higher than the rate of additional duty of Customs; nor is there a condition that if the rate of ST/VAT happens to be lower than 4%, the refund would be restricted to the lower amount. As such, it is clarified that it will not be appropriate to reduce the refund amount in such a situation and the entire 4% CVD, if otherwise found eligible, shall be refunded.

Regards

Shantanu

9971128052