Custom duty & sales tax

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CA Ritesh Jaiswal (Querist)
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25 January 2012 Dear All,

My Company is importing certain goods on behalf of our client.Client issuing us the "Project Authority Certificate" to avail benefit of concessional rate of duty.My company has subcontrated this job to another co.My query is
(1) whether we have to also separtely issue Project Authority Certificate to our subcontractors? If Yes, then who is authorised to issue?
(2) whther this transaction will amount to Sale in transit under Sales tax act?

Please reply as early as possible.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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27 January 2012 This certificate is to be signed by the Chief Executive of the project concerned or by a senior officer specifically authorised by him for this purpose whose name, designation are circulated to the Port Licensing Authority concerned. The responsibility for sending timely advice of changes in the names of the nominated officers will solely rest with the project authority concerned.

(4) In the case of supplies to be made by a sub-contractor whose name is included in the main contract, his name should also compulsorily be indicated in para 2 with details of supplies to be made by him, alongwith the name of the main contractor.

(5) In cases, where licences are to be obtained from more than one licensing authority in respect of supplies covered by the same Project Authority Certificate, a self certified copy of the Project Authority Certificate ( PAC ) in place of the original PAC may be accepted by the licensing authority. This will be certified by an officer who is authorized to file an application for licences on behalf of the company. While submitting the self certified PAC, the officer concerned will also intimate where the original PAC has been submitted so that the licensing authority may correspond with the other licensing authority, in case of need.

(6) In case of supplies under Lease financing agreement, the Project Authority certificate shall be jointly signed by the Project Authority and Lease financing.

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