Import export sales

This query is : Resolved

sachin (Querist)
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03 August 2011
Our orgnisation is Multi nation based and we have a chemical business.
Actually, we would like raise invoices from india to foreign customer,but in this case we shall procure material from USA and that material will go directly to sri lanka (our cutsomer).
In this case we shall pay the material cost to USA and we will bill the same to sri lankan custoamer after adding up our margin and that amount will charge to sri lanka customer.
In this case india will get revenue from lanka

My querries
1) Is billing allowed from india?
2) Then tax is applicable as per Income tax Act 1961

Hitender Gaur

Hitender Gaur (Expert)
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05 August 2011 Sachin if you are selling the material before landing in india it will be your High Seas Sales. You can opt High Seas Invoice for said transaction (which is exempted Sale in India) 2. Net Profit of said transaction will attract tax under IT Act 1961.