Mumbai Sugar Exports.

[Kishan Barai]

My Mumbai book reader (C= Anil bhai) got order of supply of sugar for exports, now the buyer of sugar is not exporter but he is supplying to B.

B sales against Hform to A (Actual Exporter) now will my friend (C= Anil bhai), will get tax benefit ? or deem export benefit & how much for sugar ?

Thanks in advance

[Ganeshan Kalyani]

Sir, in my view only last purchase before the export of goods takes places would be exempt as Deemed Export. So I doubt in your case your reader will get the benefit. Thanks.

[Kishan Barai]

Thanks a lot sir for reply.

AI Summary

Deemed export eligibility: intermediary supplier likely ineligible for tax benefit under chain sales to ultimate exporter.
Whether an upstream supplier qualifies for Deemed Export relief when goods are exported by another party: the entitlement is generally confined to the last domestic sale antecedent to the export. An intermediary or earlier domestic supplier that is not the final seller before export ordinarily does not satisfy deemed export eligibility, so an upstream supplier in a chain is unlikely to receive deemed export VAT/CST benefit.