05 August 2013
Dear Sir, Company A is placing an order on Singapor seller with a ship to instruction to a Sri Lanka party. Item will not come into India. Company A will then invoice on Sri Lanka party. Is this type of transaction allowed under High Sea and what documentations to follow. Can Company A book the purchase and pay singapore party and also book invoice and get paid by Sri Lanka party. In this transaction Company A does not pay any custom duty.
08 August 2013
HSS is considered as a sale carried out outside the territorial jurisdiction of India. Accordingly, no sales tax is levied in respect of HSS. The customs documents (B/E) is either filed in the name of HSS buyer or such B/E has an endorsement indicating HSS buyer's name.
The title of goods transfers to HSS buyer prior to entry of goods in territorial jurisdiction of India. The delivery from customs is therefore on account of HSS buyer. The CENVAT credit in respect of CVD paid on import is entitled to HSS buyer.
YES YOU CAN DO SUCH TRANSACTION, A CAN PLACE AN ORDER ON SINGPORE PARTY, SINGAPORE PARTY WILL SHIP THE GOODS TO SRILANKA, BILL THE SAME TO A , THEN YOU NEED TO MAKE AN INVOICE TO SRILANKA PARTY.
YOU NEED TO TAKE A PERMISSION FROM YOUR BANKER FOR THIRD COUNTRY EXPORTS, YOY MAY REMIT FOREIGN EXCHANGE TO SINGAPORE PARTY ONLY AFTER YOUR GET PAYMENT FROM SRILANKA PARTY. DO REVERT IF YOU HAVE DOUBT
12 August 2013
Dear Ramakrishnan and Ramesh Kumar , Thanks very much for your replies.
Want to clarify on the permission to be taken from banker.Is it done by an ordinary letter to our banker or we have to intimate RBI about this. Also understand from your reply that B/E will be in name of Srilanka and they will clear in their port.
CAclubindia
