TaxTMI 
TaxTMI 
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
4% SAD REFUND
09 Nov 2015 
2 Replies 
2585 Views Asked by
VAT input tax credit acceptance treats tax discharge as basis for SAD refund when supported by auditor certification.
Acceptance of VAT payment by utilization of input tax credit is treated as effective discharge of ST/VAT for obtaining refund of 4% SAD under Notification No.102/2007-Customs. Customs guidance permits input tax credit adjustments or cash payments accepted by the ST/VAT authority to satisfy para 2(d) conditions; claimants must provide an auditor/chartered accountant certificate correlating ST/VAT payments to sale invoices and supporting proof of payment. (AI Summary)
Acceptance of VAT payment by utilization of input tax credit is treated as effective discharge of ST/VAT for obtaining refund of 4% SAD under Notification No.102/2007-Customs. Customs guidance permits input tax credit adjustments or cash payments accepted by the ST/VAT authority to satisfy para 2(d) conditions; claimants must provide an auditor/chartered accountant certificate correlating ST/VAT payments to sale invoices and supporting proof of payment. (AI Summary)