Consingee: China, Buyer: India

[abhay pandey]

Dear Sir

We have to send goods to china but payment will be received from Indian buyer.

Means Consignee: China, Buyer: India

Please advise how to send these goods.

Please also advise that can we send goods without shipping bill as amount is only approx. 10000/-, can we book sale in our books without shipping bill.

[YAGAY andSUN]

Dear Abhay,

By adopting CT-1 and Form H, procedure you may send goods on behalf of your buyer to china. Further, it is mandatory to adhere with the compliance as mentioned in the Central Excise Laws, Customs Act, FTP 2009-2014 and VAT/CST Laws. In our opinion S/B, AWB as the case may be are mandatory, though free S/B etc can be filed without availing any export promotion schemes benefits.

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)

[abhay pandey]

Dear Pradeep

Thanks for clarification

ARE-1 is required or not and if required who will made CT-1 provider or CT-1 receiver.

[YAGAY andSUN]

Dear Abhay,

There is a specific procedure for getting the CT-1 from the C.E. Department. Your India customer will file a bond with surety or security (if Indian customer has the RCMC, then there is no need to submit or file the surety or security). CT-1 would be issued by the Department to your Indian Customer and in turn Indian Customer would send it to you along with duly signed Blank ARE-1. You will fill the ARE-1 and it should be duly signed. On the basis of Excise Invoice, ARE-1, you will remove the goods to Indian Customer or on his behalf send to the port for export. The Indian Customer will provide all other document such as Commercial Invoice, Packing List, S/B, Bill of Lading etc.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[abhay pandey]

Thanks

Please advise on below matters also:

ARE-1 No. will be mentioned by us or by Indian customer.

ARE-1 will be submitted to Excise Dept. as proof of Export by us or Indian Customer.

VAT/CST will be NIL against Form H

[YAGAY andSUN]

Dear Abhay,

We are submitting replies to your queries. Please go through the same.

ARE-1 No. will be mentioned by us or by Indian customer.

By Indian Customer as he is providing you the duly signed his ARE-1.

ARE-1 will be submitted to Excise Dept. as proof of Export by us or Indian Customer.

By Indian Customer, as it is executing the bond before jurisdictional AC/DC/Commissioner of Central Excise. However, after submitting the proof of export a complete set of photocopies the Proof of Export would be sent to you, for your future references.

VAT/CST will be NIL against Form H

Indian customer will provide you the Form H within one month from the date of let export order. CST would not be chargeable by you while selling the goods.

Regards

YAGAY and SUN

[abhay pandey]

Thanks for clarification

Please advise that Form H is issued on quarterly basis or Monthly basis, if quarterly how indian customer will provide Form H within one month.

Please also advise that as there is time limit of 6 month for submit the proof of export in case of direct export. The same time limit will be not applicable in case of export through Merchant Exporter.

[abhay pandey]

Please provide your views dear

[YAGAY andSUN]

Dear Abhay,

Please refer Rule 12 (10) (a), (Declaration and certificates. Manner of issue, maintenance of account and other allied matters) of The Central Sales Tax (Registration and Turnover) Rules, 1957 in this regard.

There is no mention in this Rule that Form H is required to be issued by buyer and required to be furnished to the prescribed authority within three months after the end of the period, to which the declaration or the certificate relates.

Rule 12 (10) (a) The declaration referred to in sub-section (4) of section 5 shall be in Form H and shall be furnished to the prescribed authority up to the time of assessment by the first assessing authority.

Further, proof of export is required to be submitted by a person who executes the bond within 180 days from the date of ARE-1.

We hope that this will cater you need.

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Export documentation: CT 1 and ARE 1 procedure requires buyer to secure CT 1 and submit proof supporting nil VAT/CST. Exports to foreign consignee with an Indian buyer must use CT 1 and ARE 1: the Indian buyer secures CT 1 by executing a bond (surety waived with RCMC) and provides CT 1 and signed blank ARE 1 to the exporter, who fills ARE 1 and effects export; shipping bill/airway bill and other export documents are mandatory; the buyer submits proof of export and furnishes Form H to support nil VAT/CST.