Direct third country sale

[Vishnu Agiwal]

We are a Indian firm want to purchase some goods from America and want to sale it in Poland. It will be a direct shipment from America.Our Buyer( Poland Firm) will open LC in our name and we will be opening LC in Seller name( American firm). Now in this case what will be documentation and what is the procedure.Will it attract sale tax in India. Please advice us detail procudure.

Regards

Vishnu Agiwal

[Ganeshan Kalyani]

Sir, I would request you to go through the discussion in the below issue id.

#1Issue Id: - 110070
Dated: 21-3-2016

Thanks.

[Ganeshan Kalyani]

I am hopeful your query will be resolved. Thanks.

[MUKUND THAKKAR]

Sir,

if you want to sell the goods directly from USA to Poland your BL is main documents,

first read LC terms which documents are require your buyer.according to your LC terms please check your buyer will accepted switch BL. if yes than you have to swithc BL and in addition you have submitted your invoce and packing list.

Sales tax is not applicable in such transcation.

AI Summary

Direct third country sale: ensure LC permits substituted documents and use switch bill of lading; sales tax not applicable.
Direct third country sale requires compliance with the buyer's letter of credit terms; the intermediary must ensure the LC permits substituted documents and, if accepted, effect a switch bill of lading. The intermediary should present the commercial invoice and packing list as required under the LC and shipping arrangements. Where goods ship directly from the foreign seller to the foreign buyer and the intermediary in India does not take physical possession, such transactions are not subject to Indian sales tax in the described scenario.