High sea purchase

This query is : Resolved 
 

(Querist)
12 December 2008

1 )What is High sea purchase and High sea sale? and what is the accounting treatment for the same ?

2) What is Purchase for High sea sales?
what is the accounting treatment for the same?


CA Ashutosh Kumar Mishra (Expert)
12 December 2008




HIGH SEA SALE IS A SALE WHICH IS MADE IN SEA BEFORE IMPORT IN INDIA WHICH IS IMPORT IN INDIA AND SAME REVERSE IS PURCHASE

CA Ashutosh Kumar Mishra (Expert)
12 December 2008




HIGH SEA SALE IS A SALE WHICH IS MADE IN SEA BEFORE IMPORT IN INDIA WHICH IS IMPORT IN INDIA AND SAME REVERSE IS PURCHASE

ACCOUNTING TREATMENT IS SAME AS IMPORT OR EXPORT AS RELEVANT.

Nikesh selarka (Querist)
15 December 2008

Thanks for giving this reply

Kindly can any one send me notes on the above question and examples on the same

G Muralidharan (Expert)
16 December 2008

Following are the ingredients of High Sea Sales.
1) There should be an agreement between the importer and the buyer in India
2) That agreement should have been entered before goods reaches customs frontiers in India.
3) All shipping documents/air documents should be endorsed in favour of the buyer by the importer.
4) The buyer should pay the customs duty in his name and goods should be taken by the buyer. In this case, no customs duty should be paid by the Importer and also not to take possession of the goods.
5) The buyer would become the owner of the goods and when he effects sale of those goods, it would be first sale and would suffer VAT Tax.



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