31 January 2011
high sea sales is a sale made, of a consignment, while its in sea only
suppose a power plant construction co. imports boiler turbine and generator from china to construct a power plant in india for his client let us say any state government.
now this co. have to ultimately sell these equipments to his client and for it it has to pay service tax
to save this tax of about taxes high sea sale is made i.e power plant construction co. sells these equipments when they are in sea only to state government ending up saving this tax which they otherwise have to pay if they would raise invoice to that state government for boiler turbine and generator