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TMI BlogImported free of cost material for job work in EOUX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir / Madam , We have a customer from USA who has sent us USA origin raw material free of cost to our EOU unit for job work. We will add indian origin raw material and produce final product . We will eventually export this product to customer . He wants us to only charge for the Indian origin raw material and processing cost . How do we proceed on this situation as our excise officers are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t aware of any such situation and donot know what to do and how to clear the goods pl let me have your expert opinion . regards Rajendra Rane Mumbai 9322221969 - Reply By KASTURI SETHI - The Reply = Sh.Rajendra Rane Ji, You want to clear the goods for export as job worker. You will have to follow the valuation method provided under Rule 10 A of Central Excise Valuation Rules,2000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read with Board's circular no. 902/22/2009-CX dated 20.10.2009 and Notification No. 214/86-CE dated 25.3.86 as amended. Proper transaction value and proper duty has to be worked out and mentioned on the invoice as well as prescribed Form ARE-1 for export. While computing assessable value you will have to take into account landed cost of raw material (including imported and indigenous) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d other elements for payment of proper duty (though not to be paid on for the purpose of export), otherwise there will be no correct transaction value and correct duty and hence correct amount of receipt of foreign exchange.After you will have to resort to some lawful basis for arriving at Transaction Value. The Govt. foregoes the duty for export with an aim to receive foreign exchange. The Valua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion Rules do not allow to exclude the value of imported raw material though received free of cost by you.By exclusion,the quantum of foreign exchange to be received in lieu of exported will be effected. Hence answer to your query is in the negative. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Transaction value in your case will include the value of raw material supplied free of cos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, value of material added by you, your processing charges and your profit. Transaction value is to be indicated in Form ARE-1 under which you have to clear for export the goods after job work. This value will be shown in the export invoice also. However you will collect from your foreign customer only value of the material added by you, your processing charges and your profit. - Reply By Pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ya G S - The Reply = Hello Mr. Rane, We have a similar query for our EOU unit in Bangalore. Further to the opinions given by the experts, were you able to carry out the transaction above ? Could you please share your experience/procedure ? Regards Priya G S 9243601161 Ext 310 - Imported free of cost material for job work in EOU - Query Started By: - RAJENDRA RANE Dated:- 5-11-2015 Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise - Got 3 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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