I am an importer and had imported goods in 1st Quarter.
For E.g. I have imported Product A Qty 100 Units Total CVD paid Rs. 1000/-, Product B Qty 100 units Total CVD paid Rs. 1000/- I have sold 10 units of Product A & B in Quarter 1, I have sold 10 units of Product A & B in Quarter 2 so I have issued Cenvat Credit of Rs. 100 for product A & B in Quarter 1 & 2. Now please tell me What should be the Quantity and Amount of Duty Involved in Sheet where it says Documents on which credit is passed on for Quarter 2. a) whether it should be 100 Units in Quantity Column and Rs. 1000 in Amount of Duty Involved Column b) whether it should be (100-10 sold in Qtr 1) 90 units in quanity Column and Rs. 900 in Amount of duty involved column. c) whether it should be 10 unites in QTY Column and Rs. 100 in Amount of Duty Involved
20 July 2024
In the context of your query regarding the Dealer/Importer return for imported goods and Cenvat Credit, let's clarify how you should report the Quantity and Amount of Duty Involved for Quarter 2.
### Background Recap: - **Quarter 1 Importation**: - Product A: Imported 100 units, CVD paid Rs. 1000 - Product B: Imported 100 units, CVD paid Rs. 1000 - Sold 10 units of each product (A and B) in Quarter 1
- **Quarter 2 Sales**: - Sold additional 10 units of each product (A and B) in Quarter 2
### Reporting for Quarter 2:
1. **Quantity and Amount of Duty Involved**: - The key consideration here is how much of the imported goods from Quarter 1 are being used or sold in Quarter 2, and thus eligible for passing on Cenvat Credit.
2. **Options to Consider**: - **Option (b)** seems appropriate based on standard practice in such scenarios:
**Option (b):** - Quantity Column: 90 units (100 units imported in Q1 - 10 units sold in Q1) - Amount of Duty Involved Column: Rs. 900 (CVD paid for 90 units)
**Explanation**: - You have already passed on Cenvat Credit for 10 units of Product A and 10 units of Product B in Quarter 1. - In Quarter 2, you are passing on Cenvat Credit for the remaining 90 units of each product that were imported in Quarter 1 but not sold in Quarter 1. - This aligns with the standard practice of crediting only the duty paid on goods that have not yet been sold or used in manufacturing up to the current reporting period.
### Conclusion: - **Correct Answer**: Option (b) - 90 units in Quantity Column and Rs. 900 in Amount of Duty Involved Column.
This approach ensures that your reporting accurately reflects the amount of duty involved for the goods that are still eligible for Cenvat Credit in Quarter 2, after accounting for the sales and credit passed on in Quarter 1. Always ensure to align with applicable tax regulations and guidelines specific to your jurisdiction and seek advice from your tax advisor if needed for specific interpretations or updates in rules.
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