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Issue ID: 2091
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PAC - Difference in Sub Contractor / Vendor

Date 04 Aug 2010
Replies1 Reply
Views 1635 Views
Deemed export: naming both subcontractor and manufacturer in a project authority certificate suffices to secure the benefit.
Inclusion of both the intermediary vendor/subcontractor and the manufacturer as named vendors in the Project Authority Certificate annexure is sufficient for claiming the deemed export benefit; a separate letter from the main contractor is not required where both entities are expressly listed. (AI Summary)
Under Project Authority Certificate, the main contractor (X) has placed an order of Y. Y inturn places the order on Z ( That's me a first stage dealer). We turn place the order on Manufacturer (A) from where materail will be directly shipped out to Y. In the PAC received from X, Both 'Y" & "A" is mentioned in the Annexure I as the Sub Vendor. Please advice if this is correct or a seperate letter is required from X that "A" is the vendor of "Y"
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Replied on Aug 11, 2010
1. if both the vendors, are mentioned in PAC, it should be sufficient for the purpose of benefit of deemed export.
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