Exports - S154

Question 1

Which 5 businesses does this Sec. apply?

Answer 1

1. Direct Exporter
2. Indenting commission agent
3. Local sales to exporter under Inland back-2-back LC
4. Export by Ind. Undertaking to EPZ
5. Indirect exporter (who has firm contractor) with direct exproter-registered u/DTRE

Question 2

What is regime for exporters, etc u/S154

Answer 2

FTR

unless Opt-out then - MTR/NTR

Question 3

Is rate of tax applied to Sales/Revenue

Answer 3

No,

Rate applied to Proceeds

Question 4

What is Regime of Exporter who is Importer also

FTR

or

MTR

Answer 4

Principlly - Export - FTR

Question 5

Will an exporter, who is importer also, will have to pay tax at imprt stage

Answer 5

NO, if firm export contract

Yes, if no firm export contract

Question 6

What are two (2) ways where Local sales can be categorized/fall into Export Regime i.e. 1%; FTR

Answer 6

1. Local sales Under International tender (For sales tax this will be local not export)
2. Under an SRO, Option of manufacturerer, Local sale of manufacture, not more than 20% of total sales

Question 7

What if Exporter receives advance payment or discounts export bills

Answer 7

Proceeds will be subject to 1% tax; FTR

Question 8

Rates - Exports

Answer 8

General - 1%

Foreign Indenting Commission - 5%