Export of excisable goods

[Afroz Dairkee]

We are availing SSI exemption and have a sale which is billed to a company in Germany but delivered in IIT Hyderabad.

  So the sale is in foreign exchange (Euro) but we are charging VAT 12.5% (again in Euro) as we are told that is the rule, as the consignment is going to India only

  Will this be considered as Export or home consumption?

Pl advice.

[YAGAY andSUN]

Dear Iqbal,

As per the Foreing Trade Policy, chapter 8, such exports are termed as Deemed Export.  Deemed Export means that goods don't leave the soil of India but payment are received in Foreign Currency or equivalent in Indian rupees.  All export related benefits are allowed in such scenarios.

Please check the relevant provisions under, FTP, MVAT Act read with MVAT Rules that whether you fall under the eligible category or not.  Please also have consultation with your seniors and with your MVAT counsel in this regard.

Best Regards,

Pradeep Khatri

 

[Afroz Dairkee]

Thanks a lot Mr. Pradeep Khatri.

 

Warm Regards

Iqbal

AI Summary

Deemed export: domestic delivery with foreign currency payment treated as export for benefit eligibility under trade policy. Supply billed in foreign exchange but delivered in India is classified as deemed export where goods remain within Indian territory and payment is received in foreign currency or its equivalent; export-related benefits may apply, subject to eligibility under the Foreign Trade Policy and the MVAT Act and Rules and confirmation from MVAT counsel.