deemed exports-reg

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2010 we are a DTA unit. Now we have received an order from a overseas buyer for supply of materials to a DTA unit located inside India. Payments will be received by us in foreign currency. Are there any provisions to consider this as deemed export?? we intend to take an advance authorisation for import of raw materials in this case?

Kishor Darole

Kishor Darole (Expert)
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20 May 2010 Dear,
This will be treated as direct phyiscal Export as payment is in foreign currency. In deemed Export payment is in INR.
For direct Export, you can take Advance authorisation for Import.
Regards,
Kishor

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2010 DEAR MR.KISHORE., many thanks for your reply ...can u please cite the relevant section in policy

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Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2010 mr.kishore., i wonder this can be treated as physical exports as goods do not leave the country physically.
this should be treated as deemed exports ( if at all policy permits).
The supplies are for a private power project. can it be accomodated under 8.2(g) of policy. ur views are awaited.

Kishor Darole

Kishor Darole (Expert)
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20 May 2010 Please eleborate your case in more detail with actual transaction to take place. This will help to understad better. Till now, my view is explained as per Central Excise Deemed Export procedure.
So, please reply.

Regards/ Kishor

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2010 We are a DTA unit.
The order was received from a Singapore client.
The basic fact is that the singapore client had obtained an order from a private power project in Maharashtra (NO INTL COMP BIDDING IS INVOLVED)and in turn have offloaded the entire job on us.
Payment will be received by us directly from singapore client in FC.
We have no direct link with the Indian buyer.
Can this be treated as deemed export.
The reason is we want to import raw materials for the job and are contemplating applying for advance licence.

Kishor Darole

Kishor Darole (Expert)
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20 May 2010 Thanks,
In this case, in my openion : Order is 1)collected from indian Power Project by Singapore claint, so-Indian power project amy be the commission agent.
2) Singapore claint has placed this Order directly to your DTA Unit. So, there is no any intervention of Indian Power Project unit. Payment in FC will be recd. by your DTA Unit.So, this will be treated as direct physical Export.
OTHERWISE, for Deemed Export, you can prepare Export Invoice as, Exporter : MS Power Project, Manufacurere - Your DTA Unit and Ship To : Singapore claint, BUT--> CT-3/DPC/Bond will be required from Power Project to your unit to trear as a Deemed Export, this case is not existed in your above matter.So, it is a direct Export.

Regards/ Kishor

Kishor Darole

Kishor Darole (Expert)
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