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additional CVD @ 4% available as tax credit against VAT

JAYENDRA PANCHAL (CHARTERED ACCOUNTANT) (41 Points)

28 November 2007

Additional CVD @ 4% available as tax credit against VAT if the product is exempt from excise ? If yes, then procedure to avail such tax credit?

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4 Replies

(Guest)

DEAR JAYENDRA, I HAVE HEARD THAT THE CVD MAY @ 4 % MAY BE SET OFF AGAINST VAT. IF YOU RECEIVE ANY INFORMATION,PLEASE LET ME KNOW. THKS & REGGARDS AJAY AHUJA

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Geek (Student CA Final ) (107 Points)
Replied 05 February 2008

Jayendra,

If the imported goods are sold in India, irrespective of whether they are exempt from excise, then credit of 4% CVD would be available.

However, the buyer of such goods would not be able to take credit ofsuch CVD. A mention of the fact that the CVD credit (SAD) would not be CENVATable is required on the invoice at the time of local sale.

Geek (Student CA Final ) (107 Points)
Replied 05 February 2008

Jayendra, If the imported goods are sold in India, irrespective of whether they are exempt from excise, then credit of 4% CVD would be available. However, the buyer of such goods would not be able to take credit ofsuch CVD. A mention of the fact that the CVD credit (SAD) would not be CENVATable is required on the invoice at the time of local sale.

(Guest)

Dear Sir,

I need your advise on the following matter :

DGFT has informed us to pay customs duty + interest on excess imports against Advance licence of product Di Methyl Therephthalate. The customs has given us duty calculation on excess imports as (duty structure 12.5%+16%+2%+2%+4%) which includes CVD @ 16%. Can we take credit of this CVD @ 16% which to be paid against the excess imports ??

Thanks and Best Regards.

Snehal

ASHU ORGANICS (I) PVT.LTD.