TaxTMI 
TaxTMI 
We are purchasing patterns from outside pattern makers on behalf of foreign customer. We are remitting pattern payment to the pattern makers and chargeing the same to the foreign party by making seperate invoice including 10% to 15% margin in the pattern value. The said patterns are used only for manufactur of export castings ordered by foreign party. Please guide whether we required to pay excise duty on the pattern amount.
Payment of excise duty
12 Feb 2010 
1 Reply 
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Excise duty liability rests with manufacturers, not purchasers, and patterns exported may be sent without duty.
Excise duty liability rests with manufacturers; a buyer who purchases patterns from outside pattern makers and supplies them to foreign buyers (as such) is not liable. Pattern makers must pay excise unless they legitimately claim exemptions such as SSI relief. Patterns exported by the exporter may be sent without payment of duty, subject to applicable export reliefs and procedures. (AI Summary)
Excise duty liability rests with manufacturers; a buyer who purchases patterns from outside pattern makers and supplies them to foreign buyers (as such) is not liable. Pattern makers must pay excise unless they legitimately claim exemptions such as SSI relief. Patterns exported by the exporter may be sent without payment of duty, subject to applicable export reliefs and procedures. (AI Summary)