DOES VAT APPLIES IN HIGH SEAS SALE BASIS

[jeevan prashanth]

I wanted to know does any SALES TAX  applicable  when we do business on HIGH SEAS SALE BASIS. does any local commercial taxes applies or not ?

AI Summary

VAT and Sales Tax Not Applicable to High Seas Sales Under Section 5(2) CST Act and Article 286 Constitution. A query was raised regarding the applicability of VAT or sales tax on high seas sales. Two responses clarified that VAT, sales tax, or CST do not apply to high seas sales. This is supported by Section 5(2) of the Central Sales Tax Act and Article 286 of the Indian Constitution, which restricts states from levying sales tax on imports and exports. High seas sales, involving the transfer of title documents before goods cross customs, are considered exempt from sales tax. The legal framework ensures that transactions preceding exports are also exempt, provided certain conditions are met.