Export Sales-Consignment Basis

Rohit (13 Points)

10 May 2007  
Dear Friends,

I need some help from you all we are a primarily a
company in exports to middle east and far east.
What has occured to us is that whether can we sell the
goods from a warehouse obtained in say DUBAI ie my
company takes a godown there at say dubai the sales
from india are stored in that godown and then when the
order delivery date is materialised then a sale is
delivered from Dubai godown.

At the time of sending goods to Dubai warehouse can be
book them as depot sales or do we have to show it as
stock in hand at Dubai plant. Also when the goods are
sold from say dubai whether the local taxes will
become applicable.

As the alternative for us is to form a wholly owned
subsidiary in Dubaui which will unnecessary mean legal
and other expenses.
Please help