What is the process of high sea sales?

What is the process of high sea sales?

High Sea Sales [HSS] is a common trade practice within four corners of law whereby the original importer of goods sells the subject goods to a third person before the goods are entered for customs clearance.

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.

What is the advantage of high sea sales?

What is the benefit of high sea sales? The CENVAT credit in respect of CVD paid on import is entitled to High Sea buyer. High Sea Sales goods are entitled to classification, rates of duty and all notification benefits as would be applicable to similar import goods on normal sale.

What is High Seas trade?

33/2017- Customs dated August 1, 2017. “High Sea Sales’ is a common trade practice whereby the original importer sells the goods to a third person before the goods are entered for customs clearance.”

Is e way bill required for high sea sales?

E-way bill is required for movement of goods within the country. In case of High Sea Sales as the supply is affected before the goods cross the custom frontiers of India, E-way bill is not required to be generated.

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 invoicing mandatory for high sea sales?

Whether for high sea sales and bonded warehouse sales e -invoicing is applicable? No. These activities/transactions are neither supply of goods nor a supply of services, as per Schedule III of CGST/SGST Act. e-invoicing is not applicable for import Bills of Entry.

Is GST applicable on high sea sales?

Is TCS applicable on high seas sale?

Yes, A person selling goods as part of High Sea Sales, cannot be said to be an importer. Section 206C(1H) exempts from its purview a buyer who imports goods into India. Thus in our view, the person selling the goods as High Seas Sales shall collect TCS from the person buying the goods.

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 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.

Is GST applicable on high seas sale?

Who is liable for e-invoicing?

Applicability of GST E-Invoice System It will be mandatory for the businesses to generate the entire GST e-invoice including all the value of sales. The assessee whose turnover is more than Rs 500 crore in the previous fiscal year from 2017-18.

Who is liable for TCS?

Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.

How is TCS calculated for scrap sales?

For example, invoice has been raised to customer for INR 1,00,000 towards sale of Scrap. Customer has a certificate of income tax at Lower rate @ 0.5% on Scrap instead of normal rate….TCS on sale of scrap @ lower rate.

Particulars Amount
Customer Account 103000
TCS Payable Account -500
Sales Account -100000

Is e-invoicing mandatory from 1st April 2021?

The Central Board of Direct taxes and Customs (CBIC) has made the e-invoicing system mandatory for taxpayers with a turnover higher than Rs. 50 crore from 1st April 2021.

Can we generate e-invoice for unregistered person?

All supplies made to unregistered persons or consumers are referred to as B2C transactions. However, a taxpayer is required to generate a dynamic QR code for enabling digital payments on all B2C invoices as per Notification No. 14/2020-Central Tax, as amended by Notification No. 71/2020-Central Tax.

How do I know if an e-invoice is applicable?

From 1st January 2021, e-invoicing became applicable to businesses exceeding the Rs. 100 crore turnover limit in any of the financial years between 2017-18 to 2019-20. Likewise, it was extended to businesses with a total turnover of more than Rs. 50 crore from 1st April 2021.