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