High sea sales

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2017 What are the taxes which will be applicable if i make a High Sea sale?
If i make it outside territorial waters and if i make it within territorial waters?
please help

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 October 2017 No tax applicable on high sea sale. Taxes payable only at the time of import clearance through bill of entry, on sale out side territorial waters or inside territorial waters.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2017 thanks for the reply sir, but i have some doubts- If we analyse Circular 33/2017-Cus which was issued by the government on august 1, 2017 it says that IGST on High sea sales shall be levied and collected at once.So from this circular can we say that IGST is levied on HIGH SEA SALES? and if the High Sea Sale is carried on in territorial waters then it does become an interstate transaction as per the provision of Sec 7(2) and 8(ii) of the IGST Act, so will it be subject to IGST?

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Querist : Anonymous

Querist : Anonymous (Querist)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 October 2017 Only IGST applicable being import.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2017 Was the same practice going on pre-GST?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 October 2017 Yes only CVD paid at the time of bill of entry.

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2017 So what i conclude is that- If A imports goods from USA at RS 100 and sells it to B via High Sea Sale agreement at Rs 200. Then B shall pay IGST +BCD on Rs. 200, regardless of the fact that the transaction took place outside or inside the territorial waters of India?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 October 2017 Yes you are right.........