25 March 2011
We have imported machineries from china and made contract wih the company that they will send their highly skilled professionals for the term of 1year for producion of finished goods ready to despatch from their machinery installed. MY Query is what are the taxes applicable on such contract? They will raise their bill with 17%vat in Dollars on us, Is this vat can be taken as credit or not as we are manufacturing unit? please solve my query as it is urgent.Thanks & Regards.
26 March 2011
Mr. Ram is correct in this view, You can not claim the vat charged according to law of the country of exporter even if we presuppose that you were manufacturer. It is the liability of exporter to charged and deposited the vat tax according to law and practices in that country. So it is advisable to approach with the foreign company and clear the facts to them
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