Tax on Export-reg

[N Balachandran]

Sir,

The Foreign buyer has placed on 'X' company in Tamil Nadu  for supply of Pipes and Inturn 'X' company  places the Order on 'Y' Company in Tamil Nadu.  The Company 'Y' Tamil Nadu places the order on 'Z' Company in Maharastra for supply of the same.

The Billing will be  :  Z on  Y , Y on X and inturn Y on Foreign Cutomer.

Goods will be Despatched from Z to Foreign Supplier a/c Y & X

What will be the Duty and tax implication on this transactions?.   

Kindly clarify

Regards

 

N.Balachandran

 

 

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above said issue? If not please inform.

AI Summary

Tax on export: VAT/CST treatment questioned for a multi-tier domestic supply chain with direct export shipment. A foreign buyer orders from X (Tamil Nadu), X orders Y (Tamil Nadu), and Y orders Z (Maharashtra); billing is Z Y, Y X, and Y foreign buyer, with goods dispatched from Z to the foreign buyer. The central question is the VAT/CST treatment and related export tax consequences for each domestic party, including characterization as export supply, allocation of tax liability across states, and effects of intermediary invoicing on export documentation and relief entitlements.