High seas sales

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2014 we had sale our consignment on high seas to our customer.As per rule the sale invoice value will be cif +2 % eg cif value $ 1000 +20 Sales value $ 1020. Converted in INR as per exchange rate.
Is compulsory sale invoice should be CIF + 2% or we can raised invoice only CIF value our customer will pay custom duty at customs as per rule CIF +2 %

Jyotindra Thakar

Jyotindra Thakar (Expert)
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13 February 2014 For custom duty assessment purpose customs will consider CIF value + 2% even if you raise your highseas sale invoice at lower rate. You can raise invoice at CIF value and at the time of custom clearance / assessment, your customer will have to agree to pay duty on CIF + 2%. In reverse senario, if highseas sale invoice is raised by amount more that CIF +2 %, customs will consider that amount for duty assesssment purpose which please note.

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2014 if we prepared invoice on CIF Value and our customer agree to pay custom duty CIF + 2 % as per rule. after this sale we will get commission for our supplier against the same transaction.These transaction create any issues as we indirectly paid less custom duty