Sales Tax on HSS Sale material?

[Sunil Pandey]

Dear Sir,

I have some query regarding High seas Sale

I want to sale an import shipment on HSS to Gov customer. Customer is also ready to buy it on HSS.

Customer is telling, we will sign HSS agreement and BoE will be filled in name of customer (HSS Buyer) but all destination activity (custom clearance, duty payment, delivery at customer door) will take care by us (HSS Seller) and customer (HSS buyer) will give reimbursement of all charges against our (HSS seller) bill. Customer will provide all relevant document (GATT, KYC, CHA Authorisation letter) for getting custom clearance in name of HSS Buyer. and reimburse all charges on actual basis to us.

Issue:-

As per some Tax expert this transaction is not completed since all destination activity is done by Seller (HSS Seller). they are telling once HSS agreement get signed after that all destination activity should be done by HSS buyer only.

Please let me if we will support to our customer, since they gov employee and they don't want take any headache,

Is there realy Sales tax department could be asked for Tax payment for this transaction. Please let me know whether this transaction can be done or not. if possible, please provide me notification copy as well.

Sunil Pandey

8554981089

AI Summary

High Seas Sale Transaction: Understanding Sales Tax Implications and Buyer Responsibilities in Post-Agreement Activities Under HSS Rules. A forum participant inquired about the sales tax implications of a High Seas Sale (HSS) transaction involving an import shipment to a government customer. The customer agreed to sign an HSS agreement, with the seller handling all destination activities, including customs clearance and delivery, and the customer reimbursing these costs. A tax expert suggested that the transaction might be incomplete if the seller manages these activities post-agreement. Responses indicated that no VAT/CST/Sales Tax applies to HSS, but emphasized that post-agreement activities should be carried out by the buyer.