Export of pharma products

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2017 I represent a pharma marketing company and we have identified a merchant exporter(lets call him abc) who is interested to export products manufactured at a pharma manufacturing company, lets call it xyz. We want xyz to bill the products to us so we can further bill to abc.
We do not wish that abc and xyz should have direct dealing between them as we do not want to disclose the rates we have taken from xyz and given to abc.
Kindly guide step by step on how should we proceed and what all formalities/documents would be required in the process.

ND (Expert)
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13 January 2017
One option is that you procure the goods from xyz company and show it as your purchase in your P & L Account. When you subsequently sell these goods to abc, then you show this sale as your sale in your P & L Account. This way abc and xyz will not have interaction among themselves.
The difference of purchase and sale will be your profit. You can mention that the goods are procured from xyz only when there is an order from abc. In this way there will not be any closing stock in your P & L Account. You will have to get yourself registered under VAT.

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2017 Thanks for your response. We already have vat. The thing is that the manfuacturer has to give free sale certificate(fsc) & dossier to the merchant exporter and that is issued to merchant exporter. If manufacturer bill the goods to us then the fsc will be in our name. However the merchant exporter has to provide fsc at the time of loading of goods for export.

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