Applicability of Sales Tax for the supplies done to Foreign going vessel

[Rahul Sonawane]

Dear Sir,

We are the manufacturer of Paints,  We receives order from Foreign buyer & accordingly we supply the paints to the Foreign going Vessels arriving at respective Indian port. This is the Onboard supply to Vessel.

On Invoice we are Mentioning the Name of foreign buyer - as from whom the order is received  and Name of consignee - as the Name of Vessel  and address of delivery - the Name of Port.

 Can you please help us to know the applicability of Sales tax in this case?.

 

[YAGAY and SUN]

Such transactions will be treated as Export and no Sales Tax/CST/VAT will be leviable on such transactions provided the consideration should be paid in foreign currency.

[Ravikumar muthusamy]

Dear sir

one of our client is also supplying all products as required by captain of arriving ships and send bills to respective shipping companies abroad and receive payment in foriegn currencies only.

Can u pls provide me the respective section under TNvat act as our client is in chennai, tamilndu.

it is really a very useful info and our thanks to you sir for your valued clarifications.

rgds

SAI TAX SOLUTIONS

9094043313

[Rahul Sonawane]

Dear Mr.Pradeep Sir,

Thanks for the immediate reply,

can you please know us the respective section, under sales tax.

AI Summary

Export supplies to foreign-going vessels exempt from sales tax when consideration is received in foreign currency.
Supplies made onboard foreign-going vessels at Indian ports are treated as exports and are not subject to Sales Tax/CST/VAT provided the consideration is paid in foreign currency; proper invoicing showing the foreign buyer and the vessel as consignee at the port supports this treatment. The inquiry sought the specific statutory provision under the TNVAT Act, but the replies affirmed export exemption without citing an exact section.