Tax implication on selling t-shirts out of India?

This query is : Open

Tanul (Querist)
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30 June 2011 One of my clients has newly started business of selling t-shirts online.

His supplier is supplying him with printed t-shirts that he sells to customers.

I wanted to know that when he sells t-shirt outside of India, what would be the whole process of doing so and what would be the tax implications?

I have come to know that since it is export, it would not be taxable and I can even claim refund of the tax paid on purchase of those t-shirts that I am exporting.

Please guide.

Arihanth Jain

Arihanth Jain (Expert)
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01 July 2011 I believe in case of export normally an Assessee will be eligible to claim vat/cst paid on his purchases.
However the income from sale of such exports shall be chargeable to income tax.

Other views are also welcome.