PAC - Difference in Sub Contractor / Vendor

[Sanjit Satyanath]

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'

[Surender Gupta]

if both the vendors, are mentioned in PAC, it should be sufficient for the purpose of benefit of deemed export.

AI Summary

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.