Piyush Khandelwal (Partner) 12 November 2011

Itc - rice export from uttar pradesh to nepal

1. Raw material(Paddy) was purchaed through tax invoice & the product(Rice) was exported to Nepal. In this case, what position will be of ITC earned? I mean refundable/adjustable in other transactions or will be lapsed.

2. Can we declare above purchase(for export) jointly with our normal purchases(tax invoice purchase- for India)?

3. Is Separate accounting necessary of raw material & product?

4. What papers(proofs) are necessary to prove the export?

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2 Replies

(Guest)

there are 2 parts in this transaction:

1] purchase of paddy

2] export of rice to nepal

now if your business is to production and export, then you can easily show the purchase with your normal purchase.

if you paid your tax at the time of purchase then, that tax will be adjusted against your normal tax. if you paid excess of your normal tax ( more than your normal tax) then only you can claim a refund.

in order to prove export, the export invoice or contract if any will be sufficient.

(Guest)

separate a/c will only be needed if your business is not production and export. otherwise if your business is production and export you can show it in your normal a/c.