High Sea Sale Transaction means Sale Transaction done when goods are actually at High Sea i.e. during sea transit between Port of Loading and Port of Discharge. The date of transaction (agreement) should be between Bill of lading date and Vessel arrival date at Port of discharge. High Sea Sale is done mostly by Traders, who buys in large quantity and then look out for buyers at Destination Country. Benefits of HSST are like (1) Goods are available at short time to final buyers, (2) Also instead of buying entire shipment small quantities also can be bought for final buyers and (3) First buyer can buy large quantity of goods at cheap / reasonable price and sale at best price to final buyers. Drawbacks of HSST are like (1) Cumbersome documentation / procedures and (2) Loading of pricing for Customs assessement.

high sea sales is a sale made, of a consignment, while its in sea only

suppose a power plant construction co. imports boiler turbine and generator from china to construct a power plant in India for his client let us say any state government.

now this co. have to ultimately sell these equipments to his client and for it it has to pay service tax

to save this tax of about 12% high sea sale is made i.e power plant construction co. sells these equipments when they are in sea only to state government ending up saving this tax which they otherwise have to pay if they would raise invoice to that state government for boiler turbine and generator

In High sea sales is it necessary to add 4 % Loading factor for finding Assessable value

Dear sir/madam

In High sea sales is it necessary to add 4 % Loading factor for finding Assessable value

can any one clarify me on the same

As per the procedure given by you concerns related to High Sea Sales, customs not accepting on filling of Bill of Entry on HSS Invoice (Local Currency) and ask to amend the Bill of Entry on Foreign supplier Invoice. We tried to understand customs but they refused to do that. We also told if we amend then actual price will be disclosed to the buyer. If you have any order or circular or case law then share to us.