Special Additional Duty paid on imports

[Asked by Guest]

hii all.

special Additional duty(SAD) is paid by the proprietorship firm on import.he is trader paying vat.he is taking refund of SAD . can other than dis it can be adjusted against vat liability.

[YAGAY and SUN]

Dear Dipneet,

Customs duty is a central levy and the SAD is part of it.  The Special Additional Duty (SAD) is levied in lieu of VAT/CST by the Central Government on the goods which are imported from the other countries into India.

Vide notification No. 102/2007-Customs, the refund was granted of the SAD to the Importers after following the prescribed guideline mentioned in the said notification.

This is the only mechanism through which VAT/CST is refunded by the Customs Department and there is no other way to adjust it.

This is for your information.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)

AI Summary

Special Additional Duty on imports is refundable only via the customs refund mechanism and not adjustable against VAT liability.
Special Additional Duty (SAD) is a component of central customs duty levied in lieu of VAT/CST on imports. Refund of SAD to importers is available only through the refund mechanism prescribed by the applicable customs notification and its guidelines; there is no provision to adjust SAD against a taxpayer's VAT liability.