special additional duty -credit not passed on

[Asked by Guest]

What are the circumstances under which special additional duty of sec 3(5) of custom tariff act is not passed on to buyer

[YAGAY and SUN]

Dear Dipneet,

Please read word 'Can' as 'Cannot'.

In case you seek refund of SAD under Notification No. 102/2007-Customs, then, you cannot pass on the SAD to the Ultimate buyers.

Sorry for typo error.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[Mahir S]

Generally, the SAD is not passed on by the Registered Dealer/Importer who thereafter claim refund theron from the department.

Thanx sir..

AI Summary

Special additional duty: claiming a refund under the notification prevents passing the duty on to ultimate buyers.
When an importer or registered dealer seeks a refund of the special additional duty under the relevant notification, the duty is not to be passed on to the ultimate buyers; registered dealers/importers who file for and receive such refund do not include that duty in prices charged to customers.