Merchandise trade or high sea sales?

[abhishek saraswat]

Is it legal to export goods outside India without import the same goods in India? what documents is necessary for availing this benefit? and Is there any taxability arises?
 

[YAGAY andSUN]

Dear Abhishek,

It would be treated as sale outside the country and no tax would be applicable.  However, you would have to report this transaction in the VAT/CST return.  Bill of Lading is the crucial document in this transaction.  Import Invoice, Agreement of high sea  purchase/sale and for sale of goods outside the side would also require to prove this transaction that no tax is applicable.

Regards

Team YAGAY & SUN

(Indirect Tax Consultants)

[abhishek saraswat]

dear pradeep sir,

they termed it merchandise trade and not as high sea sale...

in this transaction they have only export invoice (sale invoice) and import invoice (purchase invoice) and airway bill of purchase party direct to seller party...and bank remittance are reflected properly in this regard..

[YAGAY andSUN]

Dear Abhishek,

Your company would have to comply with the provisions of FEMA.  Air way Bill is also an appropriate document for such transactions.  Do also check with your Authorized Dealer or RBI in this regard.

Regards,

Team YAGAY & SUN

AI Summary

Exploring the Legality of Exporting Goods from India Without Prior Import: Key Documentation and Tax Insights A discussion on a forum addresses whether it is legal to export goods from India without importing them first, focusing on the necessary documentation and tax implications. An expert clarifies that such a transaction is considered a sale outside the country and is not taxable, provided it is reported in the VAT/CST return. Essential documents include a Bill of Lading, Import Invoice, and agreements related to high sea sales. Another participant notes the transaction is termed merchandise trade, requiring compliance with FEMA and possibly consulting with an Authorized Dealer or RBI.