Bill to Ovesea Company and Ship to Indian Company (Available in SEZ)

[Danish Azfar]

Hello,

I have a case on which need help to clarify.

Company A - Entity outside India

Company B - Entity in India (MOOWR Approved, providing contract manufacturing services)

Comapny C - Entity in India (Present in SEZ)

Company C is the customer of Company A, while Company B is the contract manufacturer of for Company A.

Case.

Company B import the Raw materials from Company A, process it to FG, then bill the FG to company A but ship the company C. Company A provide the invoice to company C.

Question:

1.The transaction listed above, it is treated as exports for company B?

2. Can Company B ship the FG to company C if company A didn't have any warehousign agreement with company C, what they have is the supplier and Customer agreement.

3. is their any issue or risk in receiving the payment by company B and A for the goods supplied?

AI Summary

Contract manufacturing services: Company B supplies services, not goods exports, so export classification and GST treatment rest with foreign principal.
Company B, as an MOOWR-authorised contract manufacturer, performs contract manufacturing services and does not effect an export of goods; export classification and GST treatment of the finished goods rest with Company A. Company B may ship directly to the SEZ buyer on Company A's instructions provided shipping and billing documents, MOOWR bonds/acknowledgements, and payment records clearly show the shipment is on behalf of Company A, enabling Company A to treat the supply as zero-rated while Company B invoices for service charges.