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Export Sales - Info. req. urgently please help

Sonu Kakde (CA Student & Working) (42 Points)

01 June 2010

Dear All,

I Need a urgent and important clarification regarding Export Sales, i hope to get your kind reference.

1. Can we Procure material from one county and ask them to directly despatch to our customer who is in other country without the goods entering into India i.e., our territory . But billing and consideration will be done/received here in India.

2. and if the above transaction is valid. then what is the implication on CUSTOMS and VAT.

3. Will there be any more formalities to keep in mind, while transacting or while movement of goods.

4. How to (or can we ) issue the certificate or origin when the goods are not entering our country.

I hope to get the replies at the earliest

Thanks & Regards,

Sonu Kakde

sonukakde1 @ gmail.com

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1 Replies

Ravi Prasad (Self employed) (148 Points)
Replied 20 September 2010

I don't know about Customs, but coming to VAT, this transaction is not covered by VAT Act, but by CST Act.

This is called Sales in the course of Import and this involves the endorsing of the bill of lading to the purchaser.

1. Yes you can

2. It is called "High Sea Sales" in the common language but legally, it is "sales in the course of import". This will be exempt under both local VAT and CST Acts. Youare also not eligible to collect CST and the custom duty must be borne by the purchaser and you are not suppose to take delivery of the goods and then dispatch them, but have to endorse the bill of lading in favour of the purchaser with all other documents like Sale agreement, Sale bill etc.

3. That is all you have to do under CST, but I don't know about Customs

4. The purchase bill is one major document and so is the bill of lading. I dont know about others.