'XYZ' company is procuring goods from 'ABC ind pvt ltd' on high seas sale contract. ABC ind pvt ltd is a subsidiary of ABC singapore. now as per my understanding, the CIF value shall be the HSS value in case of high seas sale. which means if CIF value is INR 100 then HSS value i.e. transaction value between XYZ and ABC ind pvt ltd shall INR 100. However, IF the HSS value/ transaction value is INR 90 , what would be the implications for XYZ company ? XYZ continues to pay custom duty on INR 100. However, plz suggest if HSS value can be lower than the CIF value?
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