What If vat not paid on imported goods

Mahavat 973 views 3 replies

Vishal Chemicals

accountant

40 Points Joined December 2009

WHAT WILL HAPPEN IF VAT NOT PAID ON SALE OF IMPORTED GOODS...?
Respected Reader
We import goods outside India & pay customs duty which include S.A.D. SPECIAL ADDITIONAL DUTY
.
when we sell goods we collect VAT from customers (who do not give easily ) & pay to state government
,
& start process of S.A.D. refund through C.A & agents of customs which is lengthy & big process
.
after receiving confirmation from commissioner of custom (REFUND CELL) that all our documents was correct & should be allowed for refund of money
,
but government officers & agents give reason there is no money available with customs to repay & years pass by no money is being received
,
now further we stopped collecting VAT from customers & do not require back SAD refund of our further purchases
,
,
is this be punishable or not.....?

as we already paid SAD to customs & do not require back
but want to decrease work of collecting VAT & SAD refund lengthy procedure
,
Awaiting your favourable reply
Thanks & Regards
Pravin

Replies (3)

Basavaraj

Associate

147 Points Joined November 2011

As per notifcation 102/ 2007 under customs law it provides that the importer who pays the SAD can claim the refund if the goods are sold and vat paid to the state government by way of cash or through input tax credit. Please refer the notification it mention the way in which refund can be claimed and documents need to be submit for claim of SAd refund

Vishal Chemicals

accountant

40 Points Joined December 2009

Mr. Basavaraj
Thanks for your reply, please check attachment with this

we followed all procedures as per notification 102/2007

commissioner has sanctioned our refund, but problem is govenment has no money to repay from last many years due to which our double money is being blocked (vat & sad both)

& procedure is so lengthy also of refund & no customers ready to take TAX INVOICE bill

question is if we import & do not make sale in tax invoice

& sell the goods in grey market without invoice

is it punishable or not....?

or when sale tax raid occur we can show them SAD PAID in customs duty & be leaved-------

as government want tax only which already paid in SAD