Goods supplied for jobwork outside india

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Kumar Gopalan (Querist)
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06 August 2011 Dear Sir,
One of our customer is in SEZ zone. 100% doing export. They are subcontracting a portion of their job to a Chinese company. They place order on us (in India) to supply some spares for the job. We inturn, advise one of our group company in china to supply spares for the said subcontractor in China. Our group company will Invoice us and we invoice to customer in India in Indian Rupee. The customer will receive the semi finished goods (together with spares supplied by our group company) from China and complete the work in India before finally exporting to Nederland. I would like to know, since the goods supplied in China is coming back to India, our customer is feeling that they are violating rule because they don't receive the spares in its form but in semi finished form, where as the payment will be made in INR to us in India. Is it violating either excise or SEZ rules (or FEMA since the payment by customer is in INR whereas the good originally supplied by our group company in China).. Please advise.
Thanks & Regards
Kumar

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 August 2011 Why you are making the things complicated. When finished goods are finally delivered from India then bring all imports etc in India and from India you export the finished goods. It is the same thing which you are doing presently. Let every one raise the bill to Indian company and Indian company will bill to Netherlands company.

Kumar Gopalan

Kumar Gopalan (Querist)
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07 August 2011 Dear Sir,

Thanks for your reply. However, the fact is that the job work contracted to China (by our SEZ customer) and we are supplying a 10% of the total spares required for the job work. After the job work, the semi finished goods are coming back to India ( to customers' SEZ).

As the job work will be done in China, we cannot supply to the customer in India and we have to supply the same through our group company in China.

Customers query is that how he will recognize such items supplied by our group company in China where as we Invoice to them in INR.

Regards
Kumar

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