There can be 2 cases
Goods directly cleared for home consumption
Goods first entered into warehouse and later cleared for home consumption
Taxable event is different in both cases as shown below
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Cases |
Taxable Event |
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Goods directly cleared for home consumption
|
When the goods reach the customs barriers and bill of entry for home consumption is filed.
|
|
Goods first entered into warehouse and later cleared for home consumption
|
Import takes place when the goods are cleared from the warehouse. |
What is Taxable event in case of Export?
Export of goods is complete when the goods cross the territorial waters of India.
If ship sinks within the territorial waters, export is not complete.
