Mou with manufacturer

Hello everyone

This is ramakrishnan , I own a trading / Export company (B in my case).

I have got an order from a Company C(foreign company which is registered in India).I have to buy a product from the manufacturer  (A) and sell the same to the Company C.

In this A to B to C transaction, I have sales tax issue so my questions are

1) can I sign a Mou with the manufacturer to elimate these sales / Vat taxes.

2) or if I lease a manufacturing plant , It would be B To C which would be a solution ?

Note : Company C exports the product they buy from us (B)

Waiting for ur replies 

thanks

Replies (2)

Signing an MoU with A will have no effect on sale tax issue. You are purchasing goods from manufatcturer A, then you sell it to foreign company C. Whatever sale tax is applicable in such transactions, it has to be paid. Leasing a manufacturing unit, too, make no difference. It seems the tax is eating away your margins.

One point like to ask you how can a foriegn company but registered in Indian Happen

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