vat on dies on Export
This query is : Resolved
05 September 2009
We are manufacture & exporter in casting. We were having some export order for that we were manufactured dies as per their specification. We were received payment from exporter for that dies, but dies are retain with us for production. what is the vat rate applicable on dies? its treat as export sale or local sale? please advice........
09 September 2009
The question arises is whether the ownership of the dies has ever been transferred to the client? if not, I don't think that VAT will be applicable in this case.
11 September 2009
WE shown Export sale in our books of account and adjust the amount received from exporter but dies physically was not gone........
11 September 2009
WE shown Export sale in our books of account and adjust the amount received from exporter but dies physically was not gone........
02 August 2025
Regarding VAT on dies made for export but retained with you, here’s the clarification:
* **Export sale for VAT purposes generally requires physical movement of goods outside the state or country.** Since the dies remain with you and are not physically shipped out, this is **not considered an export sale** under VAT.
* If the **ownership of the dies has been transferred** to the exporter (payment received and contractual transfer), then it is treated as a **local sale** for VAT, and VAT is applicable at the applicable local rate.
* If ownership has **not been transferred**, then there may be no VAT liability on the dies.
* Simply showing the transaction as export sale in books without physical export and transfer of possession does not qualify it as an export sale for VAT.
**Summary:** Since dies are retained and not physically exported, VAT on dies is applicable as local sale at the standard VAT rate of your state. You cannot treat it as export sale for VAT purposes.
* **Export sale for VAT purposes generally requires physical movement of goods outside the state or country.** Since the dies remain with you and are not physically shipped out, this is **not considered an export sale** under VAT.
* If the **ownership of the dies has been transferred** to the exporter (payment received and contractual transfer), then it is treated as a **local sale** for VAT, and VAT is applicable at the applicable local rate.
* If ownership has **not been transferred**, then there may be no VAT liability on the dies.
* Simply showing the transaction as export sale in books without physical export and transfer of possession does not qualify it as an export sale for VAT.
**Summary:** Since dies are retained and not physically exported, VAT on dies is applicable as local sale at the standard VAT rate of your state. You cannot treat it as export sale for VAT purposes.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Income tax on withdrawal of PF
- Distinct person & regular person POS
- GSTR 9 working
- Set off the amount even no liability of payment
- Query ON belated tds deduction
- INCOME TAX NOTICE QUESTION
- Clarification on Inventory
- Input Tax Credit Treatment For Hotel Service Provider.
- Authority regulating Transmission of unlisted shares
- Need Conversion process of CA Proprietary firm to CA Partnership Firm
- Query regarding metal scrap purchase from SEZ
- Seeking Assistance for MoA Amendment and ROC Compliance
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
