What is High Seas purchase and sales?

High sea sale Agreement: High sea sale agreement means, an agreement entered into by the original importer (Buyer) with the subsequent buyer, who finally takes delivery of the consignment goods after clearance by the Customs authorities.

What are the benefits of high sea sales?

The major benefits from High sea sale will be original importer can buy them at cheaper cost and can sell at profit, for original buyer he can buy goods in a short time, where importing from origin country will take more time, further he is not required to buy entire shipment, he can buy part shipment based on his …

Is GST applicable on high sea purchase?

As there is no supply, GST cannot be charged on such sales, and hence there is no question of ITC relating to such transaction. In simple words, the tax has not been charged while purchasing HSS goods and therefore the tax will not be levied in HSS sales.

Is e way bill required for high sea sales?

Whether E-way bill is required for high sea sales? Ans. Since the transactions of high sea sales are outside levy of GST and it takes place outside the boundaries of India, the seller is not required to generate an E-way bill for high sea sale transaction.

What is high sea sales with example?

For example, if a buyer in India purchases iron scrap from USA and while the shipment is in transit, the goods are sold to another person, the transaction would be termed as high sea sales.

What is the difference between high sea sales and merchanting trade?

Also as per, RBI Guidelines “For a trade to be classified as merchanting trade, goods acquired shall not enter the Domestic Tariff Area.” This is the stark difference between High Sea Sales and Merchant trade transaction. While the former must be followed by ultimate import, the later must not include import.

What is mean by high sea sales?

High sea sales is a sale carried out by the actual consignee (i.e. the consignee shown in the Bill of Lading) to another buyer while the goods are on high seas or after their dispatch from the port of loading and before their arrival at the port of discharge.

Can high sea sales be predetermined?

SICOI: SICOI (Sales in course of imports) is a predetermined sale, which means the customer is already available for the goods being imported. HSS: HSS (High sea sales) is a sale where you have to find the customer when the goods are still at the high seas or before the goods reach the country.

How do you check high sea sales?

Important document to be verified:

  1. High sea sale agreement between the party.
  2. Declaration by the buyer to bear the responsibility of custom on its letter head.
  3. Invoice of vendor and Invoice to customer is in line after adding appropriate margin.

How can I enter high sea sales in tally?

You can also record high seas sales using nature of transactions provided for deemed exports.

  1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .
  2. Select the deemed exporter in Party A/c name .
  3. Select the sales ledger.
  4. Select the stock item taxable marked for reverse charge applicability.

Where is high sea sales on Gstr 9?

High Sea Sales shall appear in GSTR-3B and GSTR-1 as Non-GST outward supplies. This will also be shown in GSTR-9 as ‘Non-GST’ supplies in Table 5(F).

How do I book export sales?

Export sales

  1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .
  2. In Party A/c name , select the customer ledger.
  3. Select the sales ledger.
  4. S elect the integrated tax ledger if it is a taxable export.
  5. Provide GST details – Yes , if you want to enter additional details regarding the export transaction.

When to use a high seas sale agreement?

The agreement should be on stamp paper. The word ‘Sea’ appearing in HSS should not be taken by it’s literal meaning. As long as the sale is formalized after dispatch from port of origin and before arrival at the first port of discharge at destination, such sale is considered as HSS.

How does high sea sale work in India?

Once after completion of necessary export procedures, A submits all necessary documents to his bank at seller’s place. ‘B’, enters in to an agreement of sale with C under high sea sale, once after movement of goods from the territorial border of exporter but before arrival of goods at the territorial border of India.

Can a goods be sold more than once on high seas?

Same goods can be sold more than once on high seas. In such cases, HSS agreement should give indication of previous title transfers. The last HSS buyer should also obtain copies of previous HSS agreement as such documents may be called upon by the customs. HSS is considered as a sale carried out outside the territorial jurisdiction of India.

How is buyers credit arranged in high sea sale?

Incase of High Sea Sale, import is done High Sea Seller and documents are routed to his bank by supplier. Final payment to supplier is also done by High Sea Seller. Thus buyers credit can be arranged by High Sea Seller. Central Sales Tax Act 1956. Section 5 (2) and Section 2 (ab)

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