Merchant exporter - How to avoid Excise duty and tax

[Guest]

Dear Sir/ Madam,

I have my first export order and I don't get proper response from tax dept people regarding how I can avoid paying excise duty and taxes to manufacturers/ suppliers. I will be buying chemicals from Indian manufacturers/ supplier and send it to African continent.

Please advise how I can avoid the excise duty (12%) and tax (5%) levied by manufacturer or supplier.

Thanks

Ragul

[VINOD KUMAR]

Dear sir, at first take a registration under central excise or service tax. Then, execute a bond with the maritime commissioner. Get CT-1 from jurisdictional Range. Now you can export the goods without payment of duty from the premises of manufacturer on the basis of CT-1. Alternatively you can export on the basis of bond and CT-1 of your manufacturer-supplier. For detailed procedure refer notification 42/2001-CE(NT), chapter 7and 14 of cbec manual.

[SHARAN RAYAPROL]

Dear sir,

apply for CT-1 from the maritime commissioner where the manufacturer is located, and give it to the manufacturer from where you want to procure goods for export. the manufacturer will clear the goods without payment of excise duty. after completion of export, you can submit the proof of export to the maritime commissioner.

regards

r.subramanya, advocate

subramanya law company

[VINOD KUMAR]

Respected Sir,

The CT-1 are to be issued from the Jurisdictional Range of Merchant exporter/manufacturer exporter who has executed the bond. One Copy of issued CT-1 is sent to the manufacturer supplier along with the ARE-1 of Merchant Exporter and one copy of CT-1 to his Jurisdictional Range Office. The manufacturer supplier can export the goods without payment of duty either under self-sealing or under supervision of Jurisdictional Range office.

After the export of goods, It is responsibility of the Merchant exporter/manufacturer exporter who has executed the bond to submit the Proof of export to the Maritime Commissioner.

AI Summary

Merchant Exporter Seeks Guidance on Duty-Free Chemical Exports Using Central Excise Registration, Bond, and CT-1 Form A merchant exporter seeks advice on avoiding excise duty and tax on chemicals purchased from Indian manufacturers for export to Africa. Responses suggest obtaining a central excise or service tax registration, executing a bond with the maritime commissioner, and acquiring a CT-1 form from the jurisdictional range. This allows goods to be exported without duty payment. After exporting, the exporter must submit proof of export to the maritime commissioner. Detailed procedures are referenced in specific notifications and chapters of the CBEC manual.