Corporate Updates – 03-08-2017

CBEC – Customs

CBEC has clarified the Leviability of Integrated Goods and Services Tax (IGST) on High Sea Sales of imported goods and point of collection. The issue has been examined in the Board. ‘High Sea Sales’ is a common trade practice whereby the original importer sells the goods to a third person before the goods are entered for customs clearance. After the High sea sale of the goods, the Customs declarations i.e. Bill of Entry etc is filed by the person who buys the goods from the original importer during the said sale. In the past, CBEC has issued various instructions regarding high sea sales appropriating the contract price paid by the last high sea sales buyer into the Customs valuation. GST council has deliberated the levy of Integrated Goods and Services Tax on high sea sales in the case of imported goods. The council has decided that IGST on high sea sale (s) transactions of imported goods, whether one or multiple, shall be levied and collected only at the time of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for the first time. Further, value addition accruing in each such high sea sale shall form part of the value on which IGST is collected at the time of clearance.


With an intent to provide a fair and efficient securities market stands on investor confidence which can be instilled by keeping the market free from manipulative practices. Regulatory intervention in this regard has been made in the areas of market manipulation and insider trading in the form of Regulations such as SEBI( Prohibition of Insider Trading) Regulations, 1992 replaced by SEBI (Prohibition of Insider Trading) Regulations, 2015. Similarly in order to curb the practice of market manipulation, SEBI has framed SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 2003. An efficacious surveillance mechanism is a prerequisite for early detection of market infractions leading to effective and preventative enforcement measures. In this regard, SEBI has setup a “Committee on Fair Market Conduct” having the representatives of law firms, mutual funds, retail brokers, institutional brokers,forensic auditing firms, Foreign Portfolio Investors, stock exchanges, chambers of commerce, data analytics firms and SEBI. Terms of Reference of the committee includes identification of opportunities for improvement in SEBI (Prohibition of Insider Trading) Regulations, 2015 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 2003 more particularly with respect to Trading plans, handling of UPSI during Takeovers and align Insider Trading Regulations to Companies Act provisions. The committee is expected to submit the report within a period of four months.

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