Is sales tax applicable on shipments effected under high sea sales

The information provided here is part of Export Import Online Tutorial

Is sales tax applicable on shipments effected under high sea sales?

  

This is one of the queries among traders who do business under High Sea Sales - Is sales tax applicable on shipments effected under high sea sales?

 

Can we treat High Sea Sale as import?

 

As per I have clearly stated the ‘Meaning of Exports and Imports’ in another article in same website with my redefinition on Imports and Exports. So I can clearly state that High Sea Sale is neither falls under Export nor Import.

Is sales tax applicable on shipments effected under high sea sales

Since high sea sale transactions are effected before arrival of goods to the country, no sales tax is applicable on imports under high sea sale. High sea sales are carried out outside territory of a country, hence it is not coming under the term ‘Imports’.

 

Who is involved in central excise benefits/levies on high sea sale.

 

As per customs and central excise, the goods are imported in the name of high sea sale buyer and all benefits and levies are involved with the new buyer (final buyer). Necessary formalities under central excise need to be followed by the final buyer under high sea sale imports.

 

You may click here to read other articles about High Sea Sales :A simple tutorial on high sea sale procedures and formalities in India   Major Documents required under High Sea Sales,   How to hide invoice value of original contract under high sea sale transactions,   Can high sea sales possible under air shipment?,   Can high sea sale be effected more than two times?,    How to check the time of contract on high sea sale transaction?  Documentation procedures on high sea sale.   Yes, I am sure, once after going through that articles you will have a good knowledge about High Sea Sales under International business.

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Comments


g.venkata ramana: can we get CENVAT CREDIT in High sea sales

joemon : is high sea sale possible for goods already landed but in customs bond?

D.Thangaraj: We import material from USA to India. Clear goods duty paid as well as duty free against licence given by customers. We also re-export to some countries like Dubai and Pakistan after clearing from Indian air ports. To save on cost and time is it possible to have high sea sales to any customer out side India.Our USA supplier will raise documents on us with Indian address. Please guide us. Thanks. D.Thangaraj

Kamalakant B Tawte : 1. Can any importer sale his goods on highseas basis to two different buyer under "ONE BILL OF LADING" If YES/NO please give your suggestion. 2. Among one of the buyer is merchant exporter who is not registered with Excise. How he can charge Excise on 2nd buyer who is manufacturer and want to avail CVD.

Rahul Saigal: I required a small clarification on High Seas Sales Transaction.I understand that under HSS, VAT is not applicable. However if the High Seas Seller clears the goods on behalf of High Seas Buyer, using Duty Credit Scrips issued to High Seas Buyer, then will this transaction not attract VAT? As the payment to the clearing agent will be made by the HSS Seller, which the HSS Buyer will reimburse later.

Rajesh Majumdar: I am begginier stage exporter. How can I get buyer. my product is cotton shirt, jute bag, handworking product, honey.

Admin: Hi Rajesh Majumdar, A short description is given in this website about HOW TO GET EXPORT ORDER

ARJUN: Is high seas sale a universal practice or restricted only to India. Kindly clarify.

C ROBERT: BOND SALES IS APPLICABLE TAX OR EXEMPTION? IF I IMPORT THE MATERIAL AND STORED IN CUSTOMS WAREHOUSE AND PART TO PART CLEARING THE MATERIAL AGAINST BONDED TO THE CONSIGNEE. KINDLY TELL THE CLARIFICATION IF TAX APPLICABLE OR NOT. REGARDS ROBERT

Mohan Ramaswamy: sir, if the goods imported under high sea sales needs to delivered to some of states in India which need road permit, is this applicable on high sea sales? thanks, Mohan

A K MUKHERJEE: Kindly clarify high sea sales import from usa and sold to srilanka on high sea sales basis what is the procedure dose it effect any tax

LAKSHMI PRABHA: any concessional Forms like Form I/Form H to be submitted to commercial Tax Dept. for High sea sale made to Interstate IOU unit in India?? will you please clarify....

Manish Jain : There is another trader who wants to procure some chemical from us and will further export the same. We both are from West Bengal. The material will come from a manufacturer at Gujarat. What are the documents required to avoid sales tax and excise to be charged on us or if at all the manufacturer will charge then how to get the refund of the same (as its an export)? We want to avoid the manufacture’s name to be disclosed to the merchant exporter.

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