Special Additional Duty paid on imports, Customs - Exim - SEZ

[Dipneet Kaur]

hii all.

special Additional duty(SAD) is paid by the proprietorship firm on import.he is trader paying vat.he is taking refund of SAD . can other than dis it can be adjusted against vat liability.

Posts / Replies

[Pradeep Khatri]

Dear Dipneet,

Customs duty is a central levy and the SAD is part of it.  The Special Additional Duty (SAD) is levied in lieu of VAT/CST by the Central Government on the goods which are imported from the other countries into India.

Vide notification No. 102/2007-Customs, the refund was granted of the SAD to the Importers after following the prescribed guideline mentioned in the said notification.

This is the only mechanism through which VAT/CST is refunded by the Customs Department and there is no other way to adjust it.

This is for your information.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)