deemed exports

[Former Member]

hi,

whethere tax cst/vat etc are applicable in case of deemed exports.

Pl suggest

[Former Member · Accepted solution]

HI

Deemed Exports is just like similar to domestic sales only and the only exception is that in deemed exports duties are exempted as the Customer submits CT3 or CT1 form and we create a ARE3

In Deemed exports VAT or CST are applicable.

VAT if the sale is within the state then VAT is applicable

CST if the sales is outside the state then CST is applicable

No excise duties they are only statistical in the pricing procedure

regards

[Former Member · Accepted solution]

hi

1. is there *any exemption of cst/vat customer can claim using some forms? in deemed exports

*2 ct1 -is value based

ct2 -is qty based license type

i want to know what is CT3

pl suggest

[Former Member]

Hi

If the customer gives the CT3 then you have to select the CT3 has license type

regards

[Former Member]

Hi

CT3 is quantity and value based.

If the customer submits C form then he will be applicable only 2% of CST else the CST will be fully charged

regards

[Former Member]

hi

is CT3 both quantity and value based?

in such a case which one will have priority qty or value?

[Former Member]

HI

Ct3 we have to enter both the quantity as well as value.

IF the material cost is 100 rs and the quantity is 100 then we need to enter the value as 10000

and also the duty rates in CT3

regards

[Former Member]

Hi

CT3 is for material supplied to 100% export oriented units. In this case Excise Duty will not be applicable and CST / LST will be on the assessable value only. We need to prepare AR3A and send it along with the material and we need to get back a copy of the AR3A back from the customer stating that the material procured were put to use.

Deemed Export is for competitive bidding where Excise duty will be paid by the manufacturer at the time of clearance, but will not be charged to the Customer. The manufacturer can get back the Excise duty paid on Deemed Exports from the Joint Director General for Foreign Trade on submission of proof like the payment certificate from the Customer stating that the customer has not paid Excise duty on the invoice, attested invoice copies by the customer, Excise invoice attested by the Excise authorities stating that the Excise duty has been paid by the manufacturer vide RG23A/C/PLA Part II slno and the Project authority certificate (PAC) that the project is approved for competitive bidding. In case of Deemed Export, the CST/LST will be levied on the Excise Duty also.

Regards,

Lakshmanan Krishnan

[Former Member]

Hi,

Just to add on all the above replies. If customer supplies Form H then the sales tax is not charged in Deemed Exports.

Rgds,

Antima

[Former Member]

hi,

1 is AR3A different from are-3 , in sap can we create AR3A

2 if cust gives form -H then whether CST or VAT which tax is exempted

PL suggest

[Former Member]

HI

> 1 is AR3A different from are-3 , in sap can we create AR3A

AR3A is nothing but in SAP it is ARE-3

> 2 if cust gives form -H then whether CST or VAT which tax is exempted

Sales Tax is exempted If form C then CST will be 2% only

regards

[Former Member]

hi

i'm slight confused on

CT1 -QTY BASED

CT2-VALUE BASED license

& CT3 -- STILL I'M NOT CLEAR Pl suggest

[Former Member]

hi

CT3 certificate contains material and qty which should not be exceeded, where as CT2 Certificate contains material, qty, value & duty any of which should not be exceeded.

regards

[Former Member]

hi

ok,

but in spro -define license type for

ct1 -i've selected value based & ct2 i've selected qty based from drop down

Now for CT3 ? WHAT OPTION I HAVE TO SELECT & IS CT3 a license type

pl suggest

[Former Member]

Hi

Yes CT3 is a license type

regards

[Former Member]

Hi,

Against Form - H, the sales tax will be exempted

Regards

Anand

[Former Member]

HI,

OK CT3 is license type but i want to know in spro -log general-tax on g movement-india-busines transaction-exports under excise egulations-deemed exports-define license types

Here i want to know for CT3 which option i need to choose is it qty or value based?

[Former Member]

Hi There,

The Definition which i got about deemed Export is A sale of goods, in India, to a company that qualifies as an export-oriented unit these companies export most of their goods; and so any goods that you sell them are liable to be used in the production of goods for export, hence the term "deemed export."

Here the sales are applicable for VAT and CST.

Thanks,

Raja

Edited by: Raja Singh Chhabeda on Jun 17, 2009 10:12 AM

[former_member315051]

It is like Local sales only

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