leavy of excise duty on purchase of machinery by contractor for outside india contract

[gopesh agrawal]

A Indian contractor want to purchase a machinery from India for a construction work in Bhutan. Is excise duty is leviable on such machinery ( work contract is exempt from service tax).

If no, will it be levied when machinery get back to India.

Please give your opinion with legal support.

[Ravi Kumar]

the sale to nepal bhutan no exemption of excise duty allowed.. spacially mantioned in the acts..

thus duty is payable on that machinery..

in this case service tax is exempt , ie services are provided outside india thus ST not appplicable on service provided od to be provide in J & K & Outside india.

the buyer is treated normally as buyer only ,,not a Contractor...

AI Summary

Excise Duty Applies to Machinery Sales to Bhutan; No Service Tax on Work Contract Outside India. An Indian contractor plans to purchase machinery from India for a construction project in Bhutan and inquires about the applicability of excise duty. The response clarifies that there is no exemption from excise duty for sales to Bhutan, as specified in the relevant acts, meaning duty is payable on the machinery. Although the work contract is exempt from service tax since services are provided outside India, the buyer is regarded as a regular buyer, not as a contractor, in this context.