TaxTMI 
TaxTMI 
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 ?
Determination of Export
05 May 2016 
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Export classification: goods remaining in India are domestic sales; customs processing required to claim export incentives.
Whether goods manufactured and delivered within India but invoiced to and paid by a foreign entity qualify as export depends on physical removal and customs processing; absent removal, such transactions are domestic sales. Clearance to a Special Economic Zone is an exception. Suppliers may invoice in foreign currency and report foreign receipts to the central bank, but without a shipping bill and customs export formalities they cannot claim export incentives or duty drawback. (AI Summary)
Whether goods manufactured and delivered within India but invoiced to and paid by a foreign entity qualify as export depends on physical removal and customs processing; absent removal, such transactions are domestic sales. Clearance to a Special Economic Zone is an exception. Suppliers may invoice in foreign currency and report foreign receipts to the central bank, but without a shipping bill and customs export formalities they cannot claim export incentives or duty drawback. (AI Summary)