Dear Experts,
I need some suggestion as a typical questions has been posted to me by my client.
There are 3 parties involved.
A - USA Supplier (from whom good will be taken)
B - Myclient (acting as Importer, Mediator)
C - Final consumer
Process is:-
1. C places order to B giving him Rs 10,000 for some product.
2. B places that order with A with Bill Name as C. (thus B paid $100 approx Rs 7000 to A by debit card)
3. B uses 3rd party customs clearance agent to clear product from customs and product will be sent to C by that customs clearing agent as product is billed on name of C.
4. Thus B earns Rs 3000 minus agent charges as earning.
Questuons:
1. Is servive tax applicable on this transaction?
2. Is VAT applicable on this transaction?
3. Is this is known as High Sea Sale (proper procedure)?
4. Is there any liability on this transaction?
Thanks in advance
CAclubindia
