Deemed Export

[Asked by Guest]

We are STB manufacturer, we have an order from an overseas trading company who has picked up an order from Indian customer to manufacture and supply this product in India. My quetions as below.

1. Is it possible and is a legal transactions?

2. How is the billing is done, as I need to do USD billing to my customer (overseas trading company) and product need to be shipped to Indian company?

3. What is the tax structure for billing to Indian company ?

4. Can we call this Deemed export?

AI Summary

Deemed export: bill overseas trader in foreign currency while delivering domestically; VAT generally not applicable.
Deemed export occurs when goods manufactured in India are supplied within India and payment is received in Indian rupees or free foreign exchange; the supplier may bill the foreign intermediary in foreign currency, deliver to the Indian purchaser on a delivery challan, and VAT will generally not apply provided the transaction meets the regulatory conditions for deemed exports and required documentation is maintained.