Vinothkumar C (Accountant) (83 Points)
09 June 2023Dear Professional's,
Indian Individual Customer order to US Company Based Online Website and Pay through online US Bank.
US Related Party Manufacture in India, So US Company Instruction to Indian Manufactures delivery to Indian customers, Indian Company only Shipping Activity.
Pls Clarify Nature of Transaction - Export or B2C..
Pranjal Gupta
(141 Points)
Replied 09 June 2023
Based on the information provided, the nature of the transaction described appears to be an export from India. Here's why:
US Customer: The customer placing the order is an individual customer from the US. This indicates that the transaction is initiated by a foreign customer.
US Company: The company from which the customer is purchasing is based in the US. While the payment is made through a US bank, the fact that the company is located in the US suggests that the transaction is initiated with a foreign party.
Indian Manufacturing: The goods ordered by the US customer are manufactured in India. The involvement of an Indian manufacturer indicates that the product is being produced in India for export purposes.
Indian Company Shipping: The Indian company's role is limited to shipping the goods to the Indian customer. This suggests that the Indian company is acting as an intermediary or logistics provider for the export transaction.
Considering these factors, it is likely that the transaction falls under the category of export rather than a domestic business-to-consumer (B2C) transaction. However, it's important to note that the final determination of the nature of the transaction should be based on a thorough analysis of the specific details and applicable regulations. It is recommended to consult with a tax professional or an expert familiar with the relevant laws to ensure accurate classification and compliance with the applicable rules.
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Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 10 June 2023
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