High Sea Sales
Querist :
Anonymous
(Querist) 30 November 2010
This query is : Resolved
Pl. infom me about the procedure of High Sea Sales & Can HSS take place within the group of companies
R.Ramachandran
(Expert) 30 November 2010
High Sea Sales means the sales that is taking place outside the territorial waters of India (which is 12 nautical miles from the sea shore). High Sea Sales is normally resorted to avoid Sales Tax. Such sales can be effected even between different group companies, so long as the companies have different and separate entities.
Querist :
Anonymous
(Querist) 01 December 2010
To,
Mr. R.Ramchandran & Mr.S.Subramanian.
First of all thanks both of you for reply, b'coz I am searching the answer from last 15 days on various sites and posted queries on various sites.
However, you have informed, HSS take place in different group of companies. But further to this, among the sister concern one is partner ship firm and another is pvt. ltd. co., again one is located at Kolhapur & another at Karnataka.
IF HSS take palce within them is there any litigation will arise in future?
Thanks
R.Ramachandran
(Expert) 01 December 2010
Dear Anonymous,
What sort of litigation that you are anticipating?
Querist :
Anonymous
(Querist) 02 December 2010
To,
Mr. R.Ramchandran
If this HSS take palce, would sales tax department will disallow the transaction in scrutiny or at the time of assessment, (b'coz our partners ship firm is situated in D zone area and under sales tax deferral scheme) saying HSS can not held in between sister concern.
Regards
