Where goods exported on advance payment, customer intimated goods not acceptable, we also don't want to bring such goods in India as logistic cost would be higher.
Do we need to comply with any formalities before making payment to customer under custom, excise & FEMA.
Do we need to pay excise, VAT as such goods is exported without payment of the same
27 October 2012
Yes you have to file various returns and in case the goods have been declared defective then get is disposed in that country and file the return with RBI and bring the money within 6 months to avoid all penal providions under FEMA etc.
When goods is declared defective, customer will not make payment. And in our case payment is received in advance, hence the question of making refund arises.
Our concern is that do we need to pay Excise/s.tax & VAT as this goods has been exported without payment of duty
However this answer seems to be not relevant. In our case exported goods are rejected and same will not be brought into India and will be disposed off in the country where it was exported.
So in such situation whether any liability of excise & vat is applicable as goods are taken out of india but not used by customer and has been disposed off
CAclubindia
