Invoice to US Company and Deliver To India@Data Center

[Himanshu Naik]

1.We need to Invoice a Customer for Good Related to IT ( Servers / Video Conf Equipment) in Us . 

2..The Material is needed to be Delivered in the data Center where the servers are to reside.So Goods are

not to move India..(We Purchase Material In India and Deliver in India)

3.Is this Treated as Export ? 

4.The payments shall be received in US$

5. We have and IEC registration with us.

Question.

1.Should we Invoice in INR or US$ 

2.Can We carry out such transaction , and what care we need to take .

 

[Rama Krishana]

Once the movement of goods are not outside India, it can not bed said that goods haver been exported out of India. In certain cases you may may avail the benefit of deemed export. For availing the benefit of deemed export You Ned to check the foreign trade policy.

as rergards, invoice in foreign exchange, as per my view you may do the same.

 

[Himanshu Naik]

Thanks. So I understand there is no Issue of FEMA/FERA , involved into this .And we do not have to Inform Any Statutory Authorities For such a transaction . As long as we are paying service tax /VAT/CST etc on Goods Delivered.And that we do not want to claim any deemed export benefit on this. 

AI Summary

Deemed export: goods supplied in India to a foreign customer are not exports; invoice in foreign exchange; domestic taxes apply. Goods remaining in India and delivered to an in country data centre are not exports where there is no movement outside India and are treated as domestic supplies attracting service tax/VAT/CST. Deemed export benefits may be available under the foreign trade policy but require compliance with that policy; invoicing in foreign currency is commercially permissible while FEMA issues are not engaged solely by lack of physical export, though foreign exchange realisation and reporting rules apply.