Please guide whether following purchase and sales would be categorized as High Sea under DVAT:
Goods purchased from a Company in Dubai. These goods are to be sold to a buyer in Singapore under a pre-existing contract. The goods will be transferred/shipped directly by Dubai Company to Singapore company. ie Goods will not cross custom frontiers of India.
Now, in the above case, in order to complete the transaction, if Dubai Company shipped the goods under discussion to Singapore company from India instead of Dubai, Will it be termed as High Sea Sales and High Sea Purchase for us?
25 January 2016
This will not be termed as high sea sales or high sea purchase. For high sea sales the sales takes place when the goods are on high seas in the ship.