Export through merchant exporter

[madhavvan n]

will the transaction be held as export by the main manufacturer if the manufacturer sells to a merchant exporter and the merchant exporter sells to another merchant exporter who in turn exports the goods outside india

[Guest]

Mr madhavan i think that it only the penultimate sale which is treated as export and not the sale before that. Hence i doubt that the transaction in the given case will be considered as export

AI Summary

Penultimate Sale Qualifies as Export in Multi-Tier Transactions; Initial Manufacturer Sale Does Not Qualify as Export. A query was raised regarding whether a transaction can be considered an export if a manufacturer sells goods to a merchant exporter, who then sells to another merchant exporter, and the goods are subsequently exported outside India. The response indicated that only the penultimate sale is treated as an export, suggesting that the initial sale by the manufacturer to the first merchant exporter would not qualify as an export under these circumstances.