Hi Sir/Madam,
we would like to Import of some trading material after customized pre fabricated job work with the same vendor.
and he would like to invoice separately for material cost & job work cost.
in this case, What will be our custom duty?
Custom duty on only on material and Service tax on job work?
or
Custom duty on both the invoices ?
Thank You.
Importing Materials for Job Work: No Customs Duty if Re-exported in 6 Months, FOB Must Exceed CIF by 10% A user inquired about customs duty and service tax implications when importing trading materials for job work, with separate invoicing for material and job work costs. An expert clarified that no customs duty is required if materials are supplied free of cost for job work against an export order, provided the resultant product is re-exported within six months. The export's FOB value must exceed the CIF value of imports by at least 10%. Another user questioned the feasibility of this, given the free cost of goods, but it was explained that the job worker earns only the job work fee, and no duty drawback is available under these conditions. (AI Summary)
TaxTMI 
TaxTMI 
