Dear Expert,
one of my client is traders, he is importing the goods and doing the trading activity. during the time of import he has paying 4% sad, and claim the refund. now my question is it is compulsory to file sad refund claim or pass the 4% sad to his buyer? if he is sales purchaser can availed the 4% cenvat credit.? because getting the refund of 4% procedure is very time consuming.please sending me any clarification in this regards with your expert view.
Traders Can Either Pass 4% SAD to Buyers or Claim Refund; Requires Proper Documentation per Notification No. 102/2007-Customs. A trader importing goods and paying a 4% Special Additional Duty (SAD) inquired whether it is mandatory to claim a refund for this duty or if it can be passed to the buyer. An expert clarified that the trader has two options: either pass the 4% SAD to the buyer or claim a refund. Proper documentation is required to claim the refund, as outlined in Notification No. 102/2007-Customs. Another expert added that if the trader supplies to manufacturers, both CVD and SAD credits can be passed on, benefiting the customer. For sales to traders, SAD becomes a cost, making refund claims necessary. (AI Summary)
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