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What is turnover of sales in course of import?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked over 2 years ago

Hi I am Kruthika. May I know, What is turnover of sales in course of import?

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3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered about 2 years ago

1.Direct Export Sale: There must be a Sale/purchase The Sale/purchase must be of Goods Goods must be moved from one Country to another Country [i.e. exported] Such movement should be as a result of export

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Open uri20170510 32134 1c996lj?1494421732 Anil answered over 2 years ago

Central sales tax is levied and collected on taxable turnover of interstate sale of goods made by a registered dealer during the prescribed period in the course of business. Article 286 (1) of the Constitution stipulates that State cannot impose a tax on the sale or purchase of goods where such sale or purchase takes in the course of import/export. Sale in the Course of Export [Sec. 5(1) of Central Sales Tax Act, 1956] 1.Direct Export Sale: There must be a Sale/purchase The Sale/purchase must be of Goods Goods must be moved from one Country to another Country [i.e. exported] Such movement should be as a result of export If all the above conditions satisfied; Effect: No CST Liability Reason: Not an “Inter-State Sale/purchase” Example: A of Mumbai, enters into contract of sale with Mr. B of London Goods are moved out of the territory of India Here movement of sale takes place because of “Contract of sale”. This is what referred as “Sale which has occasioned the export of goods”. Points to be Noted: 1.Export means “Taking the goods out of a India to a Place outside India” 2.If movement of goods commences and terminates in India, it is not regarded as Export sale. 3.Sale of fuel, food etc. to a foreign going vessels/aircraft and sale of goods by shops in Customs area to passengers going abroad are not Export Sale since the goods sold do not have a “Foreign destination”. 1.Sale by Transfer of Documents [Deemed Export]: There shall be goods Such goods must be moved from one Country to another country [Exported] During such movement, sale/purchase takes place through transfer of “Documents of title” If all the above conditions satisfied; Effect: No CST Liability Reason: Not an “Inter-State Sale/purchase” Example: A of Gujarat shipped the goods for transfer to his branch in London. After the goods are loaded on ship, Mr. A got an order from an customer in London for the said goods The branch in London transferred the “Document of title” to the customer in London In this case, sale would be deemed to be sale in the course of export effected by transfer of documents and therefore, it would not be liable to CST. Points to be Noted: 1.The sale should be effected by a transfer of document of title to goods after the goods have crossed the customs-frontiers of India. 2.Such transfer of documents can take place immediately on loading of goods in a conveyance after obtaining clearance from the Customs authorities for export. Sale in the Course of Imports [Sec. 5(2)of Central Sales Tax Act, 1956] 1.Direct Import Sale/purchase: There must be a Sale/purchase The Sale/purchase must be of Goods Goods must be moved from one Country to another Country [i.e. exported] Such movement should be as a result of import If all the above conditions satisfied; Effect: No CST Liability Reason: Not an “Inter-State Sale/purchase” Example: A of London enters into contract of sale with Mr. B of India Goods are brought into the territory of India Here movement takes place because of “Contract of sale”. This is what referred as “Sale which has occasioned the import of goods 1.Sale/purchase by Transfer of Documents [Deemed Import]: There shall be goods Such goods must be moved from one Country to another country [Imported] During such movement, sale/purchase takes place through transfer of “Documents of title” If all the above conditions satisfied; Effect: No CST Liability Reason: Not an “Inter-State Sale/purchase” Example: A’s branch in London shipped the goods for transfer to Mr. A in Gujarat. When goods were in High Seas, Mr. A got an order from an customer in India for the said goods A in India endorsed/transferred the “Document of title” to the customer in India In this case, sale would be deemed to be sale in the course of import export effected by transfer of documents and therefore, it would not be liable to CST. Points to be noted: 1.The sale should be effected by a transfer of document of title to goods before the goods have crossed the customs-frontiers of India. 2.Such transfer of documents can take place at any time before clearance of goods from customs in India. Import stars when the goods cross the customs barrier in a foreign country (exporting country) and ends when they cross customs barrier in the importing country.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 phool chandra singh answered over 2 years ago

Dear, your query is that What is turnover of sales in course of import? answer of your query is that The turnover of import (Sec.11 (2) (b) (iii) means the turnover of goods imported from out of the territory of India. Thanks & Regards,

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