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Delhi firm importing via chennai & selling to karnataka

Anshuman (Director) (33 Points)

01 October 2012

Dear Members,

We are a Pvt Ltd Co. registered at RoC Delhi. We have planned import shipment from China that will arrive at Chennai Port, TN, after customs clearance from there we will be sending and selling the material directly to a company based in Bangalore, Karnataka.

In such case what taxes will be applicable other than customs duty and which jurisdiction applicable.
What will be the best alternative for low tax incidence.

Please advice

Regards

Anshuman

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4 Replies

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 01 October 2012

Better to go for Highseas Sale.

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Rama Krishnan (MBA) (571 Points)
Replied 01 October 2012

1.In such case what taxes will be applicable other than customs duty and which jurisdiction applicable.

Answer: Other than Customs duties, you need to pay the applicable VAT/CST. You can get exemption of Special Additional duty ( SAD) on imports, provided you declare the MRP &the goods are indented for retail sale. Or Alternativley apply for refund and get SAD refund

2.What will be the best alternative for low tax incidence.

Answer : You can avoid VAT/CST provided the goods are sold on High Sea Sales, In such case your buyer has to customs clear the goods from customs.