DOMESTIC DESPATCH BUT ORDER RECEIVED FROM FOREIGN COMPANY

[Asked by Guest]

Sir,

We aer Engginering Manufacturing company ( A ) & we have got one Order from USA ( B ) . B company wants to despatch this material to C which is Indian company .

We got order from B in US dollar and paymen also received from B company in dollar . A company all documentation in the name of B company and material supply to C company .

Please guide in this case we have any Excise duty liability and also guide commercial trasaction as per legally .

With Regards,

SNEHAL SHAH

[YAGAY and SUN]

You may cultivate the benefits of deemed export in this transaction and get the benefit of terminal excise duty.

AI Summary

Deemed export benefits may apply to domestic dispatch under a foreign purchase order, enabling terminal excise duty relief.
The transaction-domestic supply to an Indian consignee under an order and payment from a foreign buyer with documentation in the foreign buyer's name-can be treated as a deemed export, permitting the supplier to claim terminal excise duty benefits, subject to meeting the procedural and documentary conditions for deemed export treatment.