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.
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. (AI Summary)
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