02 June 2009
ONE COMPANY HAS ARRANGED HIGHSEAS AGREEMENT ON A DATE OF FEB 2009. BUT THE DUTY PAID BY HIM IN APRIL 2009 AND MATERIAL COMES TO HIS WORKS IN APRIL 2009 ONLY.SELLING PARTY RAISE INVOCIE OF FEB 2009. NOW THE QUESTION IS : 1. IN WHICH F.Y. THE TRANSACTION IS TO BE RECORDED?
SECOND QUERY : WHEN THE MATERIAL IS FURTHER HIGHSEASED TO ANOTHER PARTY IN APRIL 09,SALES TAX CONSULTANT SAYS BOOK IN 09-10 SINCE MATERIAL IS NOT REACHED TO YOUR WORKS AND TO SHOW THE IMPACT OF ENTRY TAX ON FINAL OBLIGOR ...BUT ACCORDING TO T.P. ACT WE HAVE TO BOOK WHEN THE TITLE IS TRANSFERED.
03 June 2009
The concept of high sea sale is that title of goods is transferred, when goods have not touched India territory.
Invoice for 1st sale has to be booked in Feb'09 by buyer as well as seller.It is not necessary that goods should be received at works for booking of purchase invoice.
As far as 2nd sale is concerned, it is not a high sea sale since goods have already touched Indian territory. Sales tax will be required to be charged on sale transaction.
CAclubindia
