20 October 2012
This query is in relation to export of services to NEPAL.
First let me explain the circumstances.
1. The assessee 'a propreitorship firm' is a supplier of Iron-Ore Fines ( a by product of steel factories in INDIA) to some factories in Nepal.
2. The vehicles used are registered in the name of Firm, individuals of the family.
3. The customs are duly paid.
4. The payment is transferred from NEPAL in indian currency through RTGS against the 'Duty Receipt' issued from Nepal Customs.
Now the assessee wants to deliver the goods at the factory premises and recieve the total amount of goods + frieght as a lump sum through the same banking channel.
My query is :
1. Does the assessee come under the net of service tax ?
2. If yes, under which provision/ Rule ?
3. What if, if the freight is recieved through a Letter of credit in US dollars, does that change the case ?
3. Also if the additional frieght has any implication on the custon duty already being paid ?