sale of imported scrap
The scrap is either imported or purchased through high sea purchase and if the material is found inferior quality the same will be returned to the party or on the supplieru2019s advice the material will be sold to another customer.
The AED paid on the imported material or the material purchased through high seas purchase will be transferred to the supplier or the new customer. The required tax Procedure will as follows:
Assesable Value 100.00 622,768.57
CVD 14% 14.00 14% on assesable value 14% 87,187.60
Cess on CVD 2% 0.28 2% on CVD 2% 1,743.75
HSCess on CVD 1% 0.14 1% on CVD 1% 871.88
Customs Cess 2% 0.29 2% on CVD, Cess and HSc on CVD 2% 1,796.06
Customs Hscess 1% 0.14 1% on CVD, Cess and HSc on CVD 1% 898.03
AED 4% 4.59 4% on the above total 4% 28,610.64
TN Vat 4% 4.78 4% on the above total 4% 29,755.06
Gross Value 124.22 773,631.59
The above calculation is followed on payment of import duty. Out of the duties mentioned above, except cess on customs and HSCess on customs, other duties are eligible for input credit. Hence on sale we will have to reverse the input credit taken.
At present, we are selling the scrap which is arising out of our manufacturing activity. The provision of TCS is applicable on sale of these scraps. In the earlier one it is only trade and the scrap is not out of the manufacturing activity. Hence there is no TCS provision is required.
The RG1 Sales register is to be updated whenever the sale of imported scrap is made with CVD, Cess on CVD, HSCess on CVD and AED.