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Former Member

Additonal customs duty(ADC) in import

Hi,

We have scenario of import capital goods.

We have availed cenvat credit on bill of entry but the system is taking 50% credit of 14%,2% & 1% amount correctly but against 4% ADC(Additional duty of customs) it is availing 100% .

Our client reqiurement is to avail ADC 50% in first year and other 50% in next year.

What is the right procedure to follow the same.

Regards,

Goraksh.

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2 Answers

  • Sep 03, 2008 at 06:53 AM

    Hi,

    As per SAP and also as per Excise Rule. ADC Credit will be taken fully, it is not like CVD/BED, Ed Cess and SECess that 50% this year and 50% next year.

    Refer SAP Note 930756 - In MIGO,incorrect Part2 entries for capital goods having ADC, for further clarification which says as following;

    A new imports duty, Additional Duty of Customs - ADC, has been introduced with the Budget 2006-2007. As per the law, it is allowed to take 100% of credit for ADC for capital goods in the first instance, unlike other excise duties for capital goods. For all other excise duties for capital goods, it is required to take only 50% of the duty credit and the remaining after a certain period of time through the transaction J2I8.

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    Former Member
    Sep 03, 2008 at 07:02 AM

    hi

    Under cevat credit rule 2004, credit for ADC on capital goods will be taken in one intallment(as against two installment in other cases)

    So 50% credit rule is not applicable for ADC.

    Regards,

    Vijay

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