15 August 2015
We are an Indian Company importing Specialty Paints from Europe. Now we have a client ( Singapore Firm ) not having an Indian Entity to buy paints from us for their Indian Projects but invoice needs to be on their firm. The buyer is in Singapore, Seller in Europe but we need to make an agreement for selling the Paint on High Sea Sale. What precautions need to be taken in he agreement? are we effected by FERA / FEMA? we declare this as income & pay taxes the Income Tax. Does it have any repercussions in view of VAT / Customs Duty. Please advise
27 August 2015
Dear Srikanth, As per your Query you first need to get IEC code for importing the goods out of India, As your customers is out of Indian Territory, you can simply draft a HIGH Seas Sales Agreement, and you directly divert your consignment to the singapore Firm. for this any profit arises, you have to pay the tax, you have to file the Income tax return as well you have file the VAT return no need for paying VAT as There is no vat on Import as well as High Seas sales
CAclubindia
