IMPORT ADDL DUTY 4% APPLICABLE

[HITENDRA DAVE]

DEAR SIR

WHEN APLICABLE OF AED , SAD AND ELIGIBLE FOR CENVAT CREDIT

 

WITH REGARDS

HITENDRA DAVE

[YAGAY and SUN]

Dear Mr. Dave,

Basically, SAD is applicable on the imported goods for importation into India, in lieu of VAT.  If such goods on which SAD is paid are being used in the manufacturing of finished goods then CENVAT credit will be available and if such goods are sold as such then refund from the Customs Departmed can be seeked after  intimating the TIN number and to whom the goods were sold.

Further, on Capital goods 100% CENVAT credit is allowed in the very first year.

Best Regards,

Pradeep Khatri

 

AI Summary

SAD on imports: CENVAT credit available when used in manufacture; refund may be claimed when such imports are sold.
SAD on imports substitutes local VAT; SAD paid on imported inputs used in manufacture qualifies for CENVAT credit. If such SAD-paid imports are sold as such, a Customs refund may be claimed after intimating the buyer's TIN and sale particulars. Capital goods attract full CENVAT credit in the initial year of use, subject to relevant CENVAT rules and compliance.