Cenvat Credit as a First Stage Dealer

[Guest]

As a First Stage Dealer we are allowed to passon 1.CVD and related Cess 2. Special Additional Duty. to our customers.

can we not passon Additional Duty and Basic Customs duty. Please clarify.

Regards

Panth

[MUKUND THAKKAR]

As a first stage delar you can pass on CVD and AED 4% to your buyer.

4% AED if you are claiming as refund you are not eligable to passon 4% to your customer.

[KASTURI SETHI]

Credit cannot be taken on Basic Customs duty.

[Ganeshan Kalyani]

Yes basic custom duty is not cenvatable. Thanks.

AI Summary

Cenvat credit: first-stage dealers may pass on countervailing duty and AED, but basic customs duty is not cenvatable. First-stage dealers may pass on countervailing duty and special additional duty (AED) to customers; if AED is claimed as a refund by the dealer it cannot be passed on. Basic customs duty is not cenvatable and cannot be taken as Cenvat credit, restricting its pass-through treatment for first-stage dealers.