TMI BlogBill to overseas - ship to India from IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, I have the following issue. We produce goods in India and are under Contract Manufacturing Agreement. The buyer/owner is overseas. We have a situation where we have to send the goods to other state in India (Manufacturing Base is in India) and Bill to overseas buyer. Is there a procedure for this. How the foreign currency for the bill be realized. What are the tax implications and how i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t need to documented. Request expert support on this. - Reply By YAGAY and SUN - The Reply = In our view IGST would be applicable in this matter since goods have not been left India. - Reply By Kishan Barai - The Reply = IGST would be refunded if you send the goods outside the territory of India. - Reply By Rajagopalan Ranganathan - The Reply = Sir, The supply is within taxable territor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y (India). Therefore you have to pay CGST + SGST or IGST (if supply is inter- state).. The fact that you are invoicing the customer who is located ovewrseas and remittance is made in convertible foreign currency will not make yoiur supply as export.. According to Section 2 (5) of IGST Act, 2017 export of goods with its grammatical variations and cognate expressions, means taking goods out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India to a place outside India; According to Section 2 (6) of IGST Act, 2017 export of services means the supply of any service when, (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in convertible foreign exchange; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8; - Reply By YAGAY and SUN - The Reply = We endorse the views of Experts. - Reply By Praveen Nair - The Reply = Hi Experts, In continuation to the said query, if the material is subsequently export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, by the Manufacturer / Exporter, can the Contract Manufacturer call this as deemed export even though the payment is received from the Overseas Buyer (and not from the exporter). Proof of export can be provided through the Manufacturer / Exporter (even though the material is further processed to make the ultimate product). Claiming deemed export with LUT supply by the Contract Manufacturer on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequent supply to the ultimate manufacturer / exporter would help Contract Manufacturer to save on the GST since the value of the goods received from the Overseas Clients is inclusive of GST. Kindly suggest. Thanks! Pravin Nair - Reply By YAGAY and SUN - The Reply = Deemed Export is well defined in FTP 2015-2020 . - Bill to overseas - ship to India from India - Query Started By: - Shrin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivasaraghavan P V Dated:- 19-5-2018 FEMA - Foreign Exchange Management - Got 6 Replies - FEMA - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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