Merchant exporter - How to avoid Excise duty and tax

[Asked by 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

Duty-suspended export via CT-1 and bond enables manufacturer clearance without excise payment pending proof of export.
Merchant exporters must register under central excise or service tax, execute a bond with the maritime commissioner, and obtain a CT-1 from the jurisdictional range to permit manufacturers to clear goods for export without payment of duty; the exporter must submit admissible proof of export after shipment, and CT-1 and ARE-1 are exchanged with the manufacturer and range office to enable duty-suspended clearance.