The Central Board of Revenue (CBR) has issued procedure for the commercial importers to simplify filing of 'Special Return cum Payment Challan' by them.
In this regard, CBR has issued instructions to all the collectors of sales tax and customs clarifying certain issues pertaining to different columns of the return form devised for the commercial importers.
The CBR has received a number of presentations indicating that the registered persons are facing problems in calculating "Carry Forward" as required under column 12 and 13 of the Special Return cum Payment Challan for the commercial importers.
The CBR has examined the issue in consultation with the regional collectors and has directed the collectors that tax on value addition is the final discharge of the liability of the commercial importer.
"As such it is not adjustable as input tax by the commercial importer, unless the imported goods are finally supplied at a value addition in excess of 10 percent and the commercial importer pays his output tax on such higher value addition", the CBR maintained.
In case the commercial importer supplies goods as per rules, he is not entitled to claim adjustment of value addition paid at import stage and therefore, the value of column 8A of the challan form is not to be considered for calculation of carry forward/refund purposes.
For ease of calculation, the CBR has also issued a detailed working, where the commercial importer supplies goods as per rules.
Under the formula, if the value addition of actual supplies is not higher than 10 percent, the value of column 8A is not to be considered for adjustment purposes, being the final discharge of a commercial importer liabilities.
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