Export in course of imports
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 March 2011
Explain the term "export in course of import" and the difference of this kind of sale from sales under sec 5(3) of CST Act
26 March 2011
what is query????
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 April 2011
ok... now can u understand that...???
24 July 2024
The terms "export in course of import" and "sales under Section 5(3) of CST Act" pertain to different scenarios under the Central Sales Tax (CST) Act, which governs inter-state sales in India. Here’s an explanation of each:
### Export in Course of Import:
- **Definition**: Export in course of import refers to a specific provision under the CST Act where goods are imported into India and subsequently exported out of India without being used domestically in India. Essentially, it means the goods are imported temporarily and then re-exported without undergoing any processing or manufacturing in India.
- **Conditions**:
- The goods must be imported into India for the purpose of re-exportation.
- The goods should not be used for any other purpose within India but should directly be exported out of India.
- The export should happen within a specified period to qualify under this provision.
- **Example**: An importer in India brings in machinery parts from abroad. These parts are imported to be fitted into a machine, which will then be exported as a whole unit to another country. The export of the final assembled machine qualifies as "export in course of import."
### Sales under Section 5(3) of CST Act:
- **Definition**: Section 5(3) of the CST Act deals with sales where goods are sold to a buyer in India, but the movement of goods starts from one state to another or from India to outside India directly. This section covers interstate sales where the movement of goods initiates from the seller's state to the buyer's state or to a place outside India.
- **Conditions**:
- The sale must result in the movement of goods from one state to another or from India to outside India.
- The sale must be deemed to have taken place during the movement of goods.
- The transaction should satisfy the criteria specified under Section 5(3) of the CST Act.
- **Example**: A manufacturer in Maharashtra sells goods to a buyer in Gujarat, and the goods are directly dispatched from Maharashtra to Gujarat. This sale would be considered under Section 5(3) of the CST Act, as it involves movement of goods from one state (Maharashtra) to another state (Gujarat).
### Difference between "Export in Course of Import" and "Sales under Section 5(3)":
1. **Purpose**:
- **Export in Course of Import**: Goods are imported temporarily for the sole purpose of re-exportation without being used in India.
- **Sales under Section 5(3)**: Goods are sold, and the movement of goods initiates either from one state to another within India or from India to outside India.
2. **Movement of Goods**:
- **Export in Course of Import**: Goods do not undergo domestic use and are directly exported after import.
- **Sales under Section 5(3)**: Goods are sold within India, and their movement starts from one location (state or outside India).
3. **Legal Framework**:
- **Export in Course of Import**: Governed by specific provisions under the CST Act related to temporary importation and subsequent export.
- **Sales under Section 5(3)**: Governed by the general provisions of interstate sales under the CST Act, ensuring movement of goods across state borders or out of India.
In summary, "export in course of import" pertains to goods temporarily imported into India and directly exported out without domestic use, while "sales under Section 5(3)" refers to interstate sales where goods move from one state to another or from India to outside India during the transaction. Each provision serves distinct purposes under the CST Act, ensuring clarity in taxation and movement of goods across borders.
### Export in Course of Import:
- **Definition**: Export in course of import refers to a specific provision under the CST Act where goods are imported into India and subsequently exported out of India without being used domestically in India. Essentially, it means the goods are imported temporarily and then re-exported without undergoing any processing or manufacturing in India.
- **Conditions**:
- The goods must be imported into India for the purpose of re-exportation.
- The goods should not be used for any other purpose within India but should directly be exported out of India.
- The export should happen within a specified period to qualify under this provision.
- **Example**: An importer in India brings in machinery parts from abroad. These parts are imported to be fitted into a machine, which will then be exported as a whole unit to another country. The export of the final assembled machine qualifies as "export in course of import."
### Sales under Section 5(3) of CST Act:
- **Definition**: Section 5(3) of the CST Act deals with sales where goods are sold to a buyer in India, but the movement of goods starts from one state to another or from India to outside India directly. This section covers interstate sales where the movement of goods initiates from the seller's state to the buyer's state or to a place outside India.
- **Conditions**:
- The sale must result in the movement of goods from one state to another or from India to outside India.
- The sale must be deemed to have taken place during the movement of goods.
- The transaction should satisfy the criteria specified under Section 5(3) of the CST Act.
- **Example**: A manufacturer in Maharashtra sells goods to a buyer in Gujarat, and the goods are directly dispatched from Maharashtra to Gujarat. This sale would be considered under Section 5(3) of the CST Act, as it involves movement of goods from one state (Maharashtra) to another state (Gujarat).
### Difference between "Export in Course of Import" and "Sales under Section 5(3)":
1. **Purpose**:
- **Export in Course of Import**: Goods are imported temporarily for the sole purpose of re-exportation without being used in India.
- **Sales under Section 5(3)**: Goods are sold, and the movement of goods initiates either from one state to another within India or from India to outside India.
2. **Movement of Goods**:
- **Export in Course of Import**: Goods do not undergo domestic use and are directly exported after import.
- **Sales under Section 5(3)**: Goods are sold within India, and their movement starts from one location (state or outside India).
3. **Legal Framework**:
- **Export in Course of Import**: Governed by specific provisions under the CST Act related to temporary importation and subsequent export.
- **Sales under Section 5(3)**: Governed by the general provisions of interstate sales under the CST Act, ensuring movement of goods across state borders or out of India.
In summary, "export in course of import" pertains to goods temporarily imported into India and directly exported out without domestic use, while "sales under Section 5(3)" refers to interstate sales where goods move from one state to another or from India to outside India during the transaction. Each provision serves distinct purposes under the CST Act, ensuring clarity in taxation and movement of goods across borders.
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