Import and Taxes.

GST (Goods and Service Tax) is to the supplier as well as to the one we sell similar to VAT and TDS (Taxes Deducted at Source) is paid to consultants, employees and contractors:

 A business purchases raw materials for Rs. 100,000 and pays Rs. 18,000 as GST (18% of 100,000). The business uses the raw materials to manufacture a product and sells it for Rs. 150,000 and charges Rs. 27,000 as GST (18% of 150,000). The business can claim Input Tax Credit (ITC) of Rs. 18,000 on the GST paid on the raw materials. The business's net GST liability is Rs. 9,000 (27,000-18,000). You have to pay 9000 to the government later.

Now, the business hires a consultant for Rs. 50,000 and is required to deduct TDS at 10% on the payment made to the consultant. The business deducts Rs. 5,000 as TDS (10% of 50,000) and pays Rs. 45,000 to the consultant. The business is then required to deposit the TDS of Rs. 5,000 with the government.

In this example, the business is paying GST on the goods and services they purchase and supply and also deducting TDS on the payment made to the consultant. The business needs to comply with both GST and TDS regulations and deposit the taxes with the government.

Import Step by Step

import process step by step from purchase order to LC to material dispatch documents to custom

The import process from purchase order to LC to material dispatch documents to custom clearance can involve several steps. Here is a general overview of the process:

1. Purchase Order: The importer initiates the process by placing an order for goods with the exporter. The purchase order includes details such as the product, quantity, price, delivery date, and any special instructions.
2. Proforma Invoice: The exporter sends a proforma invoice to the importer, which includes detailed information on the product, price, and delivery terms.
3. Letter of Credit (LC): The importer applies for an LC from a bank, which serves as a guarantee that the importer will pay the exporter for the goods. The LC includes details such as the product, quantity, price, delivery date, and any special instructions.
4. Shipping and Dispatch Documents: Once the LC is in place, the exporter ships the goods and provides the importer with the necessary shipping and dispatch documents, such as the bill of lading, commercial invoice, and packing list.
5. Custom Clearance: The importer presents the shipping and dispatch documents to the customs authorities in the importing country for clearance. The importer may also need to pay customs duty and taxes at this stage.
6. Delivery: Once the goods are cleared by customs, they are delivered to the importer's warehouse or facility.
7. Payment: The importer pays the exporter the agreed-upon price for the goods, as outlined in the letter of credit.

It's important to note that this is a general overview of the process and may vary depending on the specific regulations and requirements of the countries involved. It's recommended to consult with a freight forwarder or customs broker for expert guidance to navigate the complexities of the import process.

 Receiver Transport Receives the Following materials.

During the dispatch of goods, the transport carrier, such as a shipping company or a trucking company, typically receives several documents from the exporter. These documents include:

1. Bill of Lading (B/L): A legal document issued by the carrier that serves as a receipt for the goods, a contract of carriage, and a document of title. The B/L confirms that the carrier has received the goods in good condition and agrees to transport them to the specified destination.
2. Commercial Invoice: A document that itemizes the goods being shipped, including details such as the product, quantity, price, and any special instructions.
3. Packing List: A document that lists all the items packed in each container or package. It includes details such as the quantity of each item, the weight, and any special instructions.
4. Certificate of Origin: A document that certifies the country of origin of the goods. It may be required for customs clearance and for availing preferential tariffs.
5. Inspection Certificates (if applicable): Certificates issued by independent inspection agencies that certify the quality and quantity of the goods.
6. Insurance Certificates (if applicable): Certificates issued by insurance companies that confirm that the goods are insured during transit.

These documents are important for the transport carrier to fulfill their obligation and to clear the goods through customs in the destination country. The carrier will also need to provide the required documents to the customs authorities and the importer in order to clear the goods and complete the delivery process.