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

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.