• The government removed excise duty on goods for manufacturing of Point of Sale (PoS) machines on November 27, 2016 that are in great demand as merchants are being compelled to use them in the wake of currency crisis. The PoS machines will be exempted from 12.5% excise duty and 4% Special Additional Duty (SAD) till March 31, 2017.
• Special additional duty with respect to customs duty is a duty leviable. under Section-3(5) of the customs tariff Act 1975. Special additional duty is levied on imports to ensure that local sellers do not lose out on competition i.e., SAD is levied due to the reason that imports are cheap compared to price charged by local manufacturer.
• Thus, to ensure both the imports and local prices are equal special additional duty is levied to counter balance the sales tax or value added tax payable by local manufacturers.
• Special additional duty with respect to customs duty is a duty leviable. under Section-3(5) of the customs tariff Act 1975. Special additional duty is levied on imports to ensure that local sellers do not lose out on competition i.e., SAD is levied due to the reason that imports are cheap compared to price charged by local manufacturer.
• Thus, to ensure both the imports and local prices are equal special additional duty is levied to counter balance the sales tax or value added tax payable by local manufacturers.
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