High Seas Sale/Purchase

Presently, we are engaged in manufacturing of corrugated boxes in our private limited company.  In few months we are suppose to import some raw material.  Now at the arrival of the import consignment :

 If we Sell the same under High Seas/Bond Transfer what will be the effect of the same in books of accounts (Purchase A/c).  Whether the amount shown in Bill of entry should be used as base for the purchase figure and what if we sell the same to the propose buyer in high seas, how to maintain the accounts in that case.

Kindly post some valuable imputs in the above matter.

Replies (7)

At the time of sale

Party Account DR.XXXXXXX

Highseas sale   Cr.XXXXXXXXX

No need to do purchase entry.because its highseas sale.

Issue Commercial Invoice. and No CST/Vat will be charge on highseas sale it will also shown in sales tax return in same month.

For more detail read by this link

/forum/procidure-of-highseas-sale-74520.asp

Dear Mr. Ram Avtar Singhji

Thanks for your quick response.

 

Regards,

Santosh Chauhan

Originally posted by : Ram Avtar Singh
At the time of sale
Party Account DR.XXXXXXX
Highseas sale   Cr.XXXXXXXXX
No need to do purchase entry.because its highseas sale.
Issue Commercial Invoice. and No CST/Vat will be charge on highseas sale it will also shown in sales tax return in same month.
For more detail read by this link
/forum/procidure-of-highseas-sale-74520.asp

 Sir,

If we dont show purchase, then Our Gross profit will be very High. Kindly clarify.

Regards,

if you are paying any cost of material then it will shown in purchase import.

if you are charging only profit then no need to do any things.

Simply book it as cost wholly no vat credit is allowed from central purchase

Dear Sir  ,

I have some querry on High seas sale  as below-

1) If we Imported the goods and the vessel has two Discharged say one in Kolkata port and thereafter in Haldia Port. If part cargo has been discharged (say 30,000MT out of 60,000MT) in Kolkata and then balance 30000 MT has been discharged at Haldia Port. The date of discharging in Kolkata & Haldia is say 10th April & 20th April,2011.

2) Now if for Haldia discharging we will enter into high seas sale agreement after discharging on Kolkata port say on 15th April,2011 can it be treated as High seas sale. Or the date of High seas sale agreement should be before 1st discharge date i.e. before 10.4.2011.

 

Please check reply and help.

 

Best Regards

S. Tiwary

when we are paying advance payment then, on which date Purchase entry should do. Please clarify.

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