Sale in the course of Import

A sale or purchase of goods shall be deemed to take place in course of import of goods into the territory of India only if:-

• sale or purchase occasions such import, or

• sale or purchase is effected by a transfer of documents of title to the goods before the goods have crossed the customs frontiers of India,

Examples:-

Sale or purchase occasions such import,

 Direct import from Outside country to India

Sale or purchase is effected by a transfer of documents of title to the goods before the goods have crossed the customs frontiers of India,

 Goods were coming to India and before there entry into India were sold to some person in India

Taxability

• No VAT/CST is imposed in case of sale in the course of import
• However, custom duty may be imposed