Question5:
The import is at concessional rate of duty, basic custom notification no.32/97.
What we think that assembly work executed by us is services, in this case
whether it will be treated as export services ?? if not, whether it has any
implication of GST?
Answer:
you imported goods under notification 32/97 which permits Exemption on goods
imported for execution of an export order placed on the importer by the supplier
of goods for jobbing. Schdule ii to the CSGT Act clause 3 contains as follow
3. Treatment or process Any treatment or process which is applied to another
person's goods is a supply of services. So you are right it is a service. Now to
decide about export we have to refer Section 13 of IGST ACT
Section 13: Place of supply of services where location of supplier or location
of recipient is outside India.
3) The place of supply of the following services shall be the location where the
services are actually performed, namely:'
(a) services supplied in respect of goods which are required to be made
physically available by the recipient of services to the supplier of services,
or to a person acting on behalf of the supplier of services in order to provide
the services: Provided that when such services are provided from a remote
location by way of electronic means, the place of supply shall be the location
where goods are situated at the time of supply of services: Provided further
that nothing contained in this clause shall apply in the case of services
supplied in respect of goods which are temporarily imported into India for
repairs and are exported after repairs without being put to any other use in
India, than that which is required for such repairs; Since your case is not a
case of repairing so it is not export of service. We suggest you to import goods
against advance authorisation without tax and export it without tax if the job
charges are good you can make cost and benefit analysis to take right decision
(Reply dt. 07/11/2017)