Excise Duty on Export of Tooling (Capital Asset)
This query is : Resolved
17 December 2010
Dear Experts, I need help on following situation.
Company ABC Ltd. (Indian) company has received a purchase order from XYZ Ltda. (Brazil) on the terms that a machinery will be developed (manufactured) by ABC Ltd. and will be retained at the premises of ABC Ltd. itself for next 15 years. Some product will be manufactured by ABC ltd. and will be exported to Brazil for next 15 years. Some of the parts produced may be sold in DTA to other customers. The cost of machinery is borne by XYZ Ltda. and corresponding inward foreign remittance will be received from 15 days of Proforma Invoice of ABC Ltd.
Now the question is for raising Proforma Invoice to XYZ Ltda (Brazil) whether excise duty shall be charged or not as there is no Physical Movement of Machinery for the export?
Also advise the taxability of Maharashtra VAT?
Company ABC Ltd. (Indian) company has received a purchase order from XYZ Ltda. (Brazil) on the terms that a machinery will be developed (manufactured) by ABC Ltd. and will be retained at the premises of ABC Ltd. itself for next 15 years. Some product will be manufactured by ABC ltd. and will be exported to Brazil for next 15 years. Some of the parts produced may be sold in DTA to other customers. The cost of machinery is borne by XYZ Ltda. and corresponding inward foreign remittance will be received from 15 days of Proforma Invoice of ABC Ltd.
Now the question is for raising Proforma Invoice to XYZ Ltda (Brazil) whether excise duty shall be charged or not as there is no Physical Movement of Machinery for the export?
Also advise the taxability of Maharashtra VAT?
17 December 2010
Excise duty cannot be charged on machinary. Vat will also be not applicable in this case. Since the ownership of machinary is with ABC Ltd.
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