Rajasekharan
(Chartered Accountant)
(28 Points)
Replied 05 June 2008
Is there any import duty payable on high sea sale made to an SEZ unit?
An High Sea Sale transaction involves sale of goods while it is on sail or transit and has not entered the waters of Indian Territory, It means the goods are still in foreign waters, Sale involves a contract to sell and deliver the goods by endorsement of delvery on the transport document ie Bill of Lading or an Air way Bill.
The entire quantity in the consignment under a Bill of Lading will have to be endorsed.
Bill ofEntry will be filed by the importer who has bought or purchased the goods at the contracted value. There is no tax on the sale as it is a sale in course of import.
Recently we(called X) have purchase material from Japan and sale it to Called "Y".In Bill of lading, shipping co. stated the name of Consignee "Y" instead wrting our name OR Order to bank.Kindly advice whether this name of ultimate consignee may also be accepted for High Sea Sale so that in future Tax authority will not creat any problem.Rest of document are in name of "X"
Hoping to hear soon.
Rdgs
Shashi Bhushan
| Originally posted by :Guest | ||
| " | Recently we(called X) have purchase material from Japan and sale it to Called "Y".In Bill of lading, shipping co. stated the name of Consignee "Y" instead wrting our name OR Order to bank.Kindly advice whether this name of ultimate consignee may also be accepted for High Sea Sale so that in future Tax authority will not creat any problem.Rest of document are in name of "X" Hoping to hear soon. Rdgs Shashi Bhushan |
" |
We have imported steel hoping that we can sell on HSS basis. Now the we don't have a prospective buyer for this steel. Can we keep it in bonded Warehouse without paying duty and dispose the material similar to HSS basis when we find a customer for the steel? What will be the tax treatment for CENVAT and VAT?
S.P.Mahanta
(Internal Auditor)
(647 Points)
Replied 29 December 2008
An importer is entitled to retain the goods imported in Bonded ware house without payment of duty. As and when required, materials can be taken out from bonded warehouse on payment of duty. This facility can be continued even after expiry of the warehousing period. However, this facility shall cease on receipt of notice from the department on removal of goods meant for home consumption.
CA IN PRACTICE...
( CA )
(490 Points)
Replied 19 September 2009
Is High sea sale done on commission basis with earlier agreement or on profit margin by
increasing the sale price. Please suggest.
Manish Gupta
(Importer)
(38 Points)
Replied 03 October 2009
HSS can be both on the basis of commission basis and on profit margin basis. When you are doing on the commission basis then at that case generally the party already knows the exact import price and you just help him in getting the consignment on Commission.
But in profit margin basis you do not want the party to know the exact price whereby you do all the clearing work of the cargo at customs and just hand over the releasing order copy and the cargo from the customs to the party address. Here you do not give the original B/L to the client for clearing whereby he does not comes to know the exact price.
I hope it suffices your queries.
vikas jamwal
(Sr Executive Accounts )
(37 Points)
Replied 09 November 2009
Dear All
High Sea sale is happened when consignement is not entered in india, there is agreement between seller and buyer and nothing is taxable on it bill of entry is in a favor of buyer
PRP SWARUP
(Asst.Manager-Commercial)
(23 Points)
Replied 28 November 2009
HSS is an agreement between two parties when the cargo is in transit.Here one benefit is theer wont be any VAT.For some products there wont be any ITC facility like Coal.But there will be an HSS load rate of 2% on CIF,and 1% as landing charges which arrives AV.The import duties will be as usual.
CAclubindia
