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set off vat agaist custom duty on import

This query is : Resolved 

06 April 2009 Dear All,

One of my client is importing from china and hongkong, on which he has to pay custom duty in all 36 %. Further when he sold imported items in domestic market, he has to pay 12.5% VAT. Is there any set off available to against custom duty or vat.?

Pls give if is there any circular from custom department.

Thanks.

06 April 2009 No set off against VAT as customs dept does not charge any VAT. Regarding other S/off you can claim Excise Modvat against duty paid



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