Sale incourse of import

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2011
A Importer has Biz in Karnataka. He has dealers in various states. Importer gets goods cleared at chennai port. During course of Import he sells goods imported in TN, Chennai itself.

He doesnt have biz premise in TN. Is this poss?

If so does this attracts VAT or CST? Else are these exempted sale as sold from Port of chennai itself.

Maninder Jain

Maninder Jain (Expert)
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07 December 2011 Goods sold during the course are imports- Such sale is called High seas sales. It does not attract any sales tax. You prepare a High seas sales agreement (needs to be submitted to Custom before clearance of goods) . The Bill of entry for the High seas sold goods will be made in the name of purchaser. He will clear the goods after paying duty.
It is immaterial whether you have biz premises at the port.

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2011 Maninder Ji,

Can u explain or provide any complete reference related to high seas sale transit sir?

So the importer must execute BE(Bill of entry) for high seas sale - is that wat u say sir

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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07 December 2011 Dear Friend, The Sale referred Mr.Mahendra Ji is High Seas. In this sale incurred on the port by the dealer who procurred the materials from abroad. The Invoice is made in the name of purchaser and Custom duties will be paid by the purchaser. The above sale does not attract any VAT or CST , since it will covered under payment made to custom duties.

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