TaxTMI 
TaxTMI 
Charged proportionately
22 Jun 2006 
3 Replies 
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Passing on Countervailing Duty permitted proportionately where importer issues proper invoice and holds CENVAT registration.
Importers may proportionately pass CVD to buyers by quantity and issue subdivided invoices under Rule 11, but must not pass duty credit exceeding CVD actually paid. CENVAT registration as an importer is required to issue a CENVAT invoice. Final CENVAT credit for CVD accrues to manufacturers, so CVD should be invoiced directly to manufacturers who will claim input credit subject to input-output norms. (AI Summary)
Importers may proportionately pass CVD to buyers by quantity and issue subdivided invoices under Rule 11, but must not pass duty credit exceeding CVD actually paid. CENVAT registration as an importer is required to issue a CENVAT invoice. Final CENVAT credit for CVD accrues to manufacturers, so CVD should be invoiced directly to manufacturers who will claim input credit subject to input-output norms. (AI Summary)
A trader importer (regd under excise) imports goods in bulk say 5 m.t. sales to 5 customers 1 mt each.Whatever CVD he pays ,he proportionately charges to his Customers ,is it o.k.?