Dear All,
We are a start-up electronic R&D firm, located in Kanpur, UP. We aspire to design and develop prototypes for our Indian and foreign clients. Designing (in electronic form) is our main value addition in the process. For development, we would charge material cost + some nominal admin fees. Prototypes would be within 100 units (mostly 10-20). We have a lab to support this development.
We would import raw material (electronic components) for prototype development. One of our foreign client has proposed to provide us raw material which would be used in developing their prototype. And we expect this to happen with other foreign and Indian clients also.
As our business involves dealing with foreign clients, we have decided to apply for Importer Exporter Code (IEC). In this regard, we would like to understand:
- Which types of exporter we are? (Merchant, Manufacturer, Service Provider or any other)
- What are the formalities to receive material for developing prototype from our foreign client? What are the complications involved if our US based client, places order with a Singapore based company and gives our Indian office address for delivery?
- Do we need Form 38 (road permit), if the raw material is provided by our Indian client from any other state? Do we need to provide road permit if a Bangalore based client instructs (and makes payment) a Gujarat based company to deliver the raw material directly to us?
Please help us.
CAclubindia
