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 and SUN]

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 and SUN]

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

Sale outside country: no domestic tax but VAT/CST reporting, documentary proof required, and FEMA compliance advised.
Transactions where goods are exported without importation in India are treated as sales outside the country and do not attract domestic tax but must be reported in VAT/CST returns. Key documentary proof includes a Bill of Lading (or Airway Bill for air shipments), import and export invoices, high-sea sale/purchase agreements and bank remittance records. Compliance with FEMA and consultation with the Authorized Dealer or RBI is recommended to ensure regulatory conformity.