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Inter country trade

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Anirudh

owner

23 Points Joined May 2012

Dear Sir,

I am a trading firm in Mumbai in chemicals. I have an order from Egypt for Methanol.

I intend to procure the material from south africa and sell it in Egypt.

I would like to have some help in regards to taxation and can this transaction be carried out legally since there is no physical arrival of goods in any port in india.

The material would be procured from South africa and delivered to egypt.

Is it possible and if yes, kindly help with regards to taxation.

Thanks,

Anirudh Vaman

9844689409

Replies (1)

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

As per Section- 7(2) of IGST Act supply of goods imported into territory of India, till they cross custom frontiers of India, shall be treated a supply of goods in the course of inter-state trade or commerce.

Hence Supply taking place in a “non- taxable territory” would be outside the jurisdiction for imposing any GST.

Yes profit on above the Income Tax is applicable