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SPECIAL ADDITIONAL DUTY

LAKSHMANAN (ASST. MANAGER) (30 Points)

18 March 2009

WETHER IS IS POSISBEL TO CLAIM THE SPECIAL ADDL DUTY 4% FOR IMPORTED MATERIALS.

THE SAME TIME IT IS POSSIBLE TO CREDIT THE SAME 4% FROM DOEMSTIC SUPPLIERS

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10 Replies

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 18 March 2009

Yes

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LAKSHMANAN (ASST. MANAGER) (30 Points)
Replied 18 March 2009

Thanks for the reply. One of our supplier ask for duty of 12% CVD and 4% additiional duty. When i discuss with our taxation they said we are unable to claim the additional duty 4%. It is cost to the company. So kindly clarify wether we are able to get back the 4%.

Sorry sir i am unable to get in your single word answer. Plz explain

Ashish M (Chartered Accountant) (2731 Points)
Replied 18 March 2009

Credit both on CVD and Special CVD is available.................

kindly refer para 4 of the circlular below link.......

https://www.eximkey.com/contents/showpage1.asp?pageid=21100

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 19 March 2009

Yes , You can get the same and forword to suppliers.

You can get the credit or get the duty drawback of SAD (Special Additional Duty).

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 19 March 2009

There are some things that needs to be clear to all before going ahead to claim SAD Refund.

U can not take credit of SAD. that means, U must pay SAD first at the point of entry at customs. U must pay VAT/CST at the time of sale of the goods. And, then, U should go to claim SAD. So, it is called Refund and not taking Credit of SAD. U can not say that U have already paid SAD and do not want to pay VAT/CST. U must pay VAT/CST and go for refund.

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Ashish M (Chartered Accountant) (2731 Points)
Replied 19 March 2009

ok.......!

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 20 March 2009

Well Mr. Lakshmanan, now your question is clear. As a buyer from importer, you cannot get refund of SAD paid by the importer. Such refund is allowed only to importer, who also pay VAT at the time of sale of goods.

However, if you are a manufacturer, you can take cenvat credit of SAD.

CA-ASPIRANT (CA-STUDENT ) (650 Points)
Replied 19 May 2009

Is it necessary to take declaration from the importer that refund of SAD has not been taken by him and you(purchaser from importer) may take credit of the same.

Kamal Sarda (COO) (21 Points)
Replied 30 May 2010

Whether a manufacturer who also is an importer/trader, can claim credit of SAD paid on imported items which he trades and use the credit for clearance of manufactured goods. If yes, what are the provisions