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Import Or Export In Sales Tax India
Inside Or Outside A State Sale Or Purchase.
Section 4(2) Central Sales Tax Act states that a sale or purchase of goods shall be said to take place inside a state, if the goods are within the State, in the following situations:
- If the goods are specific (Goods, identified and agreed upon at the time of making of the contract of sale) or ascertained, at the time the contract of sale is made.
- In the case of unascertained or future goods, at the time of their appropriation to the contract of sale by the seller or by the buyer, whether assent of the other party has been made prior or subsequent to such appropriation.
Hence, Sub-section 2 to S 4 lays down that the sale or the purchases of goods are deemed to take place inside a state in the following cases:
- In case of ascertained goods or specific goods�i.e. such goods are within the state at the time of contract of sale.
- In the case of unascertained or future goods�i.e. such goods are in that State in which the goods are situated at the time of their appropriation to the contract of sale by the buyer or seller.
When goods are sold or purchased inside any state, as explained above, such sale or purchase is said to have taken place outside ALL other states. Where there is a single contract of sale or purchase of goods, situated at more than one place, the provisions of the Act will apply as if there were separate transactions in respect of the goods at each of such places.
Sales Or Purchase In The Course Of Export.
Section 5(1) Central Sales Tax Act states that a sale or purchase of goods is deemed to take place in the course of export of the goods out of the territory of India, only if the sale or purchase either occasions such export or is effected by a transfer of documents of title after the goods have crossed the customs frontiers of India.
To constitute a sale in the course of export, there must be an intention on the part of both the buyer and seller to export. There must be an obligation to export and there must be an actual export. In order to prove that a sale was occasioned in the course of export, a person will not only have to prove that the goods have moved from a place inside India to a place outside India. The mere taking of the goods out of India does not amount to the export of the goods.
Notwithstanding anything in sub-section (1), the last sale or purchase of any goods, preceding the sale or purchase occasioning the export of those goods out of the territory of India, shall also be deemed to be in the course of export. However, such last sale or purchase should have taken place after and was for the purpose of complying with the agreement or, order for or, in relation to such export.
Sales Or Purchase In The Course Of Import.
Section 5(2) Central Sales Tax Act states that a sale or purchase of goods is deemed to take place in the course of import of the goods into the territory of India only if the sale or purchase either occasions such import or, is effected by a transfer of documents of title before the goods have crossed the customs frontiers of India.
If a sale is effected by a transfer of documents of the goods before the goods have crossed the customs frontiers of India, a sale or purchase is deemed to have taken place in the course of import of the goods into the Indian territory. S 2(ab) defines �Crossing the customs frontiers� as crossing the limits of the area of a customs station in which imported goods or export goods are ordinarily kept before clearance by customs authorities.
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