Exports and Imports No tax on export Sale cs executive professional notes
Export Sale u/s 5(1) If a sale is a export sale as explained below, no sales tax is leviable under CST and VAT
A sale or purchase of goods is deemed to be in course of export of the goods out of the territory of India, only if—
(i) Sale/purchaser either occasions such export; or
(ii) is effected by a transfer of documents of title to goods after the goods have crossed the customs frontiers of India.
We can note the following points regarding ‘Export Sale’:
(i) Sale should occasion the export
(ii) Sale to foreign tourist do not constitute `Sale in the course of Export’. Sales by star hotels of food to foreign airlines on any airports in India does not amount to ‘sales in the course of export’.
(iii) Goods should be destined to foreign country , though actual reaching of destination not necessary.