Determination of Export

[Guest]

DELIVERY OF GOODS MADE IN INDIA BUT INVOICE RAISED TO A FIRM OUT SIDE INDIA AND PAYMENT ALSO RECEIVED FROM OUT SIDE INDIA IN US DOLLARS. WHETHER IT IS EXPORT OR DOMESTIC SALES ?

AI Summary

Discussion on Goods Transaction: Export or Domestic Sale Under Customs Act, 1962? SEZ Exception Noted. A forum discussion addressed whether a transaction involving goods manufactured in India, invoiced to a foreign firm, and paid in US dollars constitutes an export or domestic sale. Several participants agreed it is a domestic sale, as the goods remain in India and foreign exchange is not received in India. References were made to the Customs Act, 1962, defining export as taking goods out of India. An exception for SEZ was noted. One participant argued it could be considered an export transaction for banking purposes, despite no physical export or customs processing, thus lacking export incentives.