H form

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Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2011 Mr. A is regrtered dealer in DVAT and purchased goods from chennai against C-FORM and directly he exported goods to USA from chennai party's warehouse and gave possession from that warehouse and goods are cleared from mumbai port. NOW WHAT TO DO FOR H FORM as to get issued from delhi or banglore. Please tell me my liability with regard to H-form as all the custom formalties are completed by the Usa party

S.P.Mahanta

S.P.Mahanta (Expert)
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15 September 2011 H form is related to duty free sale of goods exported & is submitted by the exporter to the supplier of goods whereas C form is against inter state sale of goods issued by buyer to supplier of goods. Mr A will have to issue H form to supplier of goods from chennai alongwith proof of export for nil duty. Amount charged against C form can be got adjusted.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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15 September 2011 I agtree with the expert

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Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2011 From where to adjust the amount charged against C-FORM

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 July 2024 In the context of interstate sales and exports under the Indian VAT system, the H Form plays a crucial role in ensuring that the export of goods is recognized as zero-rated, thereby allowing the dealer to claim a refund of the tax or avoid paying it in the first place. Here’s a detailed guide on handling the H Form and related issues based on the scenario you’ve described:

### **1. Understanding H Form**

The H Form is used for the export of goods from India to a foreign country and is a declaration by the dealer that the goods have been exported out of India. This form helps in ensuring that the export is treated as a zero-rated supply under VAT laws.

### **2. Issuing the H Form**

Given the details in your query:

- **Mr. A**, who is a registered dealer under DVAT (Delhi VAT), purchased goods from Chennai and directly exported them to the USA.
- The goods were cleared from Mumbai port and customs formalities were completed by the USA party.

Here’s how to handle the H Form:

#### **Where to Get the H Form**

1. **Issuing Authority:**
- **H Form** should be obtained from the state where the goods were purchased. In this case, since the purchase was made from Chennai, you need to request the H Form from the Tamil Nadu VAT department.
- Since Mr. A is a registered dealer under Delhi VAT, the export documentation needs to be consistent with the state's VAT rules where the purchase was made.

2. **Adjustment Against C-Form:**
- The C Form is used for claiming a concessional tax rate on interstate sales. Since the goods were exported, the dealer should request the H Form from the VAT department in Tamil Nadu (where the purchase was made) to reflect that the sale is for export purposes and thus zero-rated.
- The amount charged against C Form should be adjusted or offset by the amount covered by the H Form, ensuring that VAT was not collected on the exported goods.

### **3. Process to Obtain H Form**

1. **Application Process:**
- **Chennai Purchase:** Contact the Tamil Nadu VAT department to apply for the H Form. You will likely need to provide proof of export, such as shipping bills, export invoices, and customs documentation.
- **Delhi Registered Dealer:** Even though Mr. A is registered under DVAT, the H Form must be requested from the place where the purchase was made.

2. **Documents Required:**
- **Export Documents:** Shipping Bill, Bill of Lading, Proof of Export, etc.
- **Purchase Invoices:** Invoices from Chennai supplier showing the C Form.
- **Customs Clearance Documents:** To prove that the goods were exported and cleared from the Mumbai port.

3. **Submission:**
- Submit the application along with the required documents to the Tamil Nadu VAT office. They will process the request and issue the H Form.

### **4. Adjusting VAT Charged Against C-Form**

- **C-Form Usage:** The C Form is used to get a concessional rate on interstate sales. Since the goods are exported, the sale is zero-rated.
- **Adjustment:** The VAT amount charged and covered by the C Form should be adjusted or refunded based on the H Form. If you have already paid VAT on the C Form, you can claim a refund or adjustment based on the H Form issued for the export transaction.

### **5. Compliance and Follow-Up**

- **Maintain Records:** Ensure that you maintain detailed records of all documents related to both the C Form and the H Form.
- **Consult with Authorities:** It may be helpful to consult with the VAT departments in both Tamil Nadu and Delhi to ensure compliance and proper handling of both forms.

### **Summary**

1. **Request the H Form from Tamil Nadu VAT Department** where the purchase was made.
2. **Provide necessary export documentation** to support the H Form request.
3. **Adjust or claim a refund** for the VAT charged against the C Form based on the H Form.

If you have further queries or need detailed assistance, consulting a tax professional or VAT consultant familiar with interstate trade and export regulations might be beneficial.