TaxTMI 
TaxTMI 
High Sea Sale
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....igh Sea Sale<br> Query (Issue) Started By: - Ashok Kela Dated:- 19-2-2014 Last Reply Date:- 22-2-2014 Customs - Exim - SEZ<br>Got 1 Reply<br>Customs<br>Indian Company namely purchases goods from outsi....
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....de India. Company 'B' purchases on high seas sale from company "A" and sells to 3rd company outside India there itself. The goods never arrive in India. Since company 'A' of Indian origin purchases in....
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.... US Dollar and since Company 'B' also an Indian Company purchases on high sea sale from Company 'A', the payment by company 'B' to company 'A' should be in US dollar as company 'A' has purchased in US....
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.... dollar. Company 'B' will sell the goods outside India in to a 3rd country and proceeds received by company in US Dollar. Both the comopany 'A' & 'B' have value addition. Please confirm this is in or....
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....der. Reply By Harish Chander Bhatia: The Reply: Basically this is back to back transaction. There is a value addition in the books of A , because it purchases the goods while it is on high seas and ....
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....sell the same to 3rd party. There is no value addition in the books of B, since it has sold the goods to A on high seas , as its normal business earning normal business profit , and 3rd party is not i....
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....ndian , since all the transaction took place while the goods on high seas, no state VAT, would charge it to tax. I do not find any infirmity in this type of arrangement.<br> Discussion Forum - Knowled....
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....ge Sharing ....