4% SAD REFUND

[Samir Banerjee]

One importer/trader while selling goods within state paying applicable VAT amount by setting off VAT Input credit available with importer/trader. The importer will submit alongwith application record of VAT Input Credit Account wherein the debit entries of VAT appearing against sale of Imported Goods. All sales are made within state. My query is will the VAT payment made from VAT Input Credit account be acceptable by Customs Department and allow the refund the 4% SAD

AI Summary

VAT Payments via Input Credit Accepted for 4% SAD Refund on Imports; Requires Auditor Certification and Sales Tax Approval. An importer inquired about the acceptability of VAT payments made through VAT Input Credit for a 4% Special Additional Duty (SAD) refund on imported goods sold within the state. Two responses referenced relevant customs notifications and public notices. Both responses clarified that VAT payments, whether made in cash or through input tax credit adjustments, are acceptable for fulfilling the conditions required for a 4% SAD refund. This is contingent upon the acceptance of such payments by Sales Tax Authorities and the provision of a certificate from a Statutory Auditor or Chartered Accountant correlating the VAT payments with sales invoices.