Availment of credit of additional duty (custom) 4%

This query is : Resolved

Vishant Patel (Querist)
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06 February 2015 Can Service Provider avail credit of Additional Duty (Custom) 4% (019/2006) against the Service Tax Payment?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 February 2015 A special additional duty (SAD) of Customs of 4% has been levied on all imports by the Budget 2006-2007.

However, such credit is not available to a service provider or any person engaged in other activities that do not attract excise duty such as mining, power generation and construction. An importer-trader, who imports and sells goods in India upon payment of CST/VAT, had to first pay SAD, and then CST/VAT on sale of the imported goods.