Dear Experts
WE want to procure raw material from domestic market agst.Advance licence without payment of central excise duty. The Finished goods produced will be SUPPLIED OUR CUSTOMER WHO IS THE ULTIMATE EXPORTER Pls.guide us in the following points.
1. what will the document to be given to Raw material supplier by us . WE ARE NOT DIRECT EXPORTER
2.What remarks to be mention in the invoice by Raw material supplier.
3. whether manufacturer supplier of material can supply the material without payment of duty
agst. Advance licence.
Pls give any refrence of Notification /Circular for Export under advance licence.
REGARDS,
N VIJAYA BHASKAR
Company Seeks Excise Duty Exemption for Steel Procurement via Advance License; Experts Advise on Complex Procedures A company seeks guidance on procuring steel from domestic suppliers without paying central excise duty, using an advance license and invalidation letters from DGFT. They are not direct exporters but supply to a customer who is. An expert advises attaching the invalidation letter to the purchase order and mentions that suppliers typically prefer paying duty due to complex exemption procedures. Despite having invalidation letters, suppliers require additional documentation from excise authorities. Another expert clarifies that excise duty exemption is governed by the Ministry of Finance, and suppliers might charge excise duty, which can be refunded later. (AI Summary)
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