export tax

[zakkir hussain]

Dear sir ,

I am an engineer working in Dubai, i have a client here who need some ENGG designs ,, and they need some material too.

1. Designs i am developing from my laptop and sending them.

2.Respective material i will buy from dubai [ by cash purchase ] itself to reduce freight cost and supply them,

as i am individual and i have no any co in dubai to receive the payment and the customer want to transfer the payment to india in indian rupees to in a company name.

simply saying buying from local [ dubai ] and need to sell thru india.,,

so please tell me,

1.do i need to register as an establishment in india ?

2.do VAT is applicable for such invoicing from india?

3.do VAT or any tax is applicable for any exports from india? tamil nadu ?

4. my approximately design and goods value is 1 lakh per month approximately .

5.if i have a registered est in india , while invoicing do i need to add VAT 5 % ?

6.Now dubai implementing VAT locally. 5%.

kindly reply

zakkir

[Ganeshan Kalyani]

Sir, in India Goods and Service Tax is implemented with effect from 01.07.2017. Export is made under two option. One is with payment of Integrated Tax and second is without payment of integrated tax under LUT. In your case it is only the payment which is received in India. In my view GST is not applicable only for receipt of money. However i welcome views of my collegue experts. Thanks.

[KASTURI SETHI]

Dear Querist, You buy from Dubai and want to sell in India. It is import and taxable. GST is applicable and not VAT. You need registration. Regarding export procedure, I agree with Sh.Ganeshan Kalyani Ji.

[zakkir hussain]

Sir .mr kasturi didnot got my point.

Simply saying buying in dubai and aelling itself in dubai but thru indian co inv.and payment transfer to indian Co.

Just only invoive is issued from india.

So my inv ..need to add any tax or vat.or any income tax i have to pay?

Hope its clear now.

Plz reply for my all points earlier.

Thanks a lot for your kind advice.

[KASTURI SETHI]

O. K. So neither import of goods nor import of service is involved. Hence no GST is applicable. Since VAT is subsumed with GST so no VAT is applicable. Income Tax Act is not my cup of tea.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir.

Dear querist, please why you want to bill from India when all the transaction are outside the taxable territory. Eager to learn.

AI Summary

GST territoriality: supplies effected outside taxable territory are not subject to GST in India when only invoicing occurs domestically. A Dubai-based supplier issuing invoices from India while supply and payment occur outside India does not, by invoicing alone, attract GST or VAT; GST applies where goods are imported into India and requires registration, while exports may be effected with integrated tax payment or without under a Letter of Undertaking.