High seas sales

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2015 If A imports goods through sea and enters into a high seas sales transaction with B. And B before receiving goods enters into high seas sales transaction with C. So in books of B, seperate entries is to be made for purchase and sales or a single entry of net difference i.e. purc hases & sales is to be passed. Kindly explain the journal entries also.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 January 2015 Separate entries to be passed for purchase and sale. Book this sale under high sea sales so that no sales tax is payable.

Amol S Joglekar

Amol S Joglekar (Expert)
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03 January 2015 sale is effected, delivery is directly routed.
So better to make separate entries for sale and purchase.
in the books of B
Debit High Seas Purchases
Credit A

Debit C
Credit High Seas Sales

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2015 Can you tell me under which section is high seas sales transaction covered?

Amol S Joglekar

Amol S Joglekar (Expert)
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03 January 2015 section? which Act?
It is a disclosure requirement.
In VAT you get certain exemptions so need to show separately

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