Deemed Export

[narendra arora]

I would like to request to all of you, please let me know that :

1. Which sales is treated as Deemed Export

2. If I filed a tender  to Govt. Deptt. and sales made. Is this sales treated as Deemed Export    

 

3. What benefits are available to supplier  

Thanks

[Radha Arun]

Sales to govt departments are not deemed exports.

Exemption from excise duty is available for sale to government departments for particular projects or purposes. 

Item No.1. Good which are sold to direct exporter is Deemed Export. This sales is come under sec.5(2) of the CST ACt 1956.

Item  No.2. No. Sale to Department. is taxable under VAT Act. Based on the materials sales to department it will be levied at reduced  rate. Some declaration forms should be produced be taxation authority. 

Item  No: 3.  replied in Item No.2.

AI Summary

Deemed export: sales to direct exporters qualify while sales to government departments follow domestic VAT and excise rules.
Deemed export status hinges on purchaser identity: sales to a direct exporter are treated as deemed exports, while sales to government departments are not and are taxable under the VAT framework. Suppliers to government departments may obtain excise duty exemptions for particular projects, but reduced VAT rates and eligibility depend on materials, transaction specifics, and submission of prescribed declaration forms to the taxation authority.