Terminal Excise Duty:

It is a Central Excise Duty if any paid on the goods supplied to Deemed Exports.

Central Excise duty is an indirect tax levied on those goods which are manufactured in India and are meant for home consumption. The taxable event is ‘manufacture’ and the liability of central excise duty arises as soon as the goods are manufactured.

Deemed Exports: In terms of Foreign Trade Policy (FTP) 2015-2020, “Deemed Exports” refers to those transactions, in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian Rupees or in Free Foreign Exchange.

Octroi:

It is a local tax collected on various commodity brought into a district for consumption.

Cities in the Indian state of Maharashtra briefly abolished octroi in 2013 and replaced it with local body tax. However, octroi was reestablished there in 2014, due to decreased revenues from the local body tax.

There is a rule termed as Octroi on Export Promotion rules 1976. It says, exemption from octroi of the commodity declared to have been imported for the purpose of Export to Foreign Countries.

Sales Tax:

A sales tax is a consumption tax imposed by the government on the sale of goods and services. A conventional sales tax is levied at the point of sale, collected by the retailer and passed on to the government.

In order to claim any benefits under sales tax authorities, the registration of your firm is mandatory. The exporter may also buy the goods from dealer/manufacturer for the purpose of export trade without payment of sales tax.

No sales tax is involved under export sales. If you source out any materials from a third party seller for your export purpose, the said supplier is exempted from sales tax as the materials he supplies to you is for ‘export purpose’. However, the said supplier can avail the benefit of sales tax only if he also registered with sales tax authorities.

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