Practicing Indirect Tax
97 Points
Joined November 2008
There are some things that needs to be clear to all before going ahead to claim SAD Refund.
U can not take credit of SAD. that means, U must pay SAD first at the point of entry at customs. U must pay VAT/CST at the time of sale of the goods. And, then, U should go to claim SAD. So, it is called Refund and not taking Credit of SAD. U can not say that U have already paid SAD and do not want to pay VAT/CST. U must pay VAT/CST and go for refund.
where to apply? U should apply for SAD refund at the entry o custom where U have paid SAD. That means, if goods enter India from Kolkatta Port and U sell them in BIHAR, then, U must apply in Custom Office of Kolkatta Port.
Another thing, U must present VAT/CST bill at the time of apply. so that means, U can not claim refund on unsold goods.
Last aspect, we should be able to claim refund on re-imported goods as well after they are sold.