High sea sales/high sea purchase

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This query is : Resolved

Nidhi Verma (Querist)

24 January 2016 Dear experts,

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?

Thanks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

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.

Nidhi Verma

Nidhi Verma (Querist)

28 January 2016 Thanks for reply sir,

If it is not high sea, then what should we call this sales?
Where to show this type of sales and purchase in DVAT return?

Thanks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 January 2016 It will export sales for which no VAT applicable.

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