DEPB Exemption from Special AddL Duty (SAD) - A few Illustrations
Circular No.49/1998-Customs date 20/7/1998 Notification No. 48/98-Cus.dt. 17.7.98 has been issued by the Department of Revenue (copy enclosed). This notification provides that SAD is completely and unconditionally exempt on goods imported under DEPB Scheme (under Notification No. 34/97-Cus.). In effect, SAD would not be levied on that portion of value the duty payable on which is covered by the credit. The remaining portion of SAD which is not covered by the credit in the DEPB Book would be paid in cash as obviously the excess value cannot be treated as imported within the credit available in the DEPB Book. An illustration for the calculation of exemption from SAD is shown in theAnnexure attached herewith for post export DEPB. In case of pre-export DEPB, the SAD will be completely exempt.
Sd/-
(Sandeep Ahuja)
Under Secretary to the Government of India
F.No. 605/78/98-DBK
Annexure
Illustration in regard to Exemption from SAD 4% under DEPB Scheme
Remarks(a) CIF Value of Imported goods Rs.100/-(b) Basic Customs Duty @ 30% Rs.30/- to be debited in DEPB Book.(c) CVD @10% on Rs.130/- Rs.13/- to be paid in cash or debited in DEPB Book.(d) Special Customs Duty @5% Rs.5/- to be debited in DEPB Book.(e) Total amount of duty payable Rs.35/- or (if CVD is not paid in cash) in DEPB Book (e=b+c+d) Rs.48/-(f) Credit available in DEPB Book. say Rs.20/-(g) Ratio of debitable duties to credit available. (g=f/e) 20/35 or ( " ) 20/48(h) SAD leviable = 4% of assessable Rs.5.92 value (Rs.100)+BCD)Rs.30)+CVD (Rs.13)+Spl.CD(Rs.5)(i) Exempted portion of SAD= Rs.3.38 or ( " ) g x total SAD leviable Rs.2.46(j) SAD payable in cash (j=h-i) Rs.2.54 or ( " ) Rs.3.46 Balance of SAD as at (j) above, is to be paid in cash being in excess of duty adjusted against DEPB credit, the exact amount at (j) will be Rs.2.54 if CVD is paid in cash,^ Rs.3.46 of CVD is also debited in DEPB Book.
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