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How to save taxes in export/sales company as we are not manufacturers
22-Jul-2023 (In Tax Law)
Hi, I am planning to start export firm but I don’t have any manufacturing unit or production. So the business model will be to focus on sales and once we get the order, we take the products from manufacturer and ship it to the customer. Problem – If we buy the product from manufacturers then we will also have to pay Taxes incurred during the transaction which will eventually increase the cost of the product and we will not be able to sell the products in competitive prices. Query – Is there any provision that we can act as a marketing partner with manufacturing company and save taxes
hi
That's good you are starting your own venture
ans to your queries
1. provision for that can u act as a marketing partner
ans. no, there is no such provision that you can act as a marketing partner without the acceptance of the company with whom you want to partner with.
2. yes by investing not on purchases as you have to pay taxes such as VAt, CSAT etc which is compulsory to pay. You can`t avoid taxes if you do not pay now then you have to pay in future when your business grows.
That's good you are starting your own venture
ans to your queries
1. provision for that can u act as a marketing partner
ans. no, there is no such provision that you can act as a marketing partner without the acceptance of the company with whom you want to partner with.
2. yes by investing not on purchases as you have to pay taxes such as VAt, CSAT etc which is compulsory to pay. You can`t avoid taxes if you do not pay now then you have to pay in future when your business grows.
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Adv. Bhavishya Mehra
Delhi | 25+ Answers
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Under FTP of India there are various schemes that allows a manufacturer or trader to export goods out of India. Every country needs foreign exchange to develop its economy, precisely for this reason there is no or very less export duty on some goods. Your query have many possible answers. You can either take an Advance License (which allows you to procure duty free raw material either from outside India or from India) or you can take the benefit of remission of excise and sales tax. Excise Laws allows you to export gods without payment of excise duty and under sales tax you have to pay sales tax on export goods but the paid amount can be sought as a refund from the Government.
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Adv. Deepak Thackur
Delhi | 25+ Answers
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