H form

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2013 If Have made sales against Form H without charging VAT, While filing MVAT Return where do i show that particular sales. In the sense under which head do i deduct H Form sales, since i have not charged VAT.

K Bala Kishan

K Bala Kishan (Expert)
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13 November 2013 You have to declare the said H Form sales under Export Sales (Deemed Export sales). Also these sales form part of Export Sales under CST Act.

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2013 I have sold those goods to a registered party within the state. so under CST Return will it come under turnover of sales within the state or sales in the course of export out of india U/s 5(1) for deduction??.

Also, under MVAT Return as per your advice i will show it as a deduction under export sales U/s 5(1) of CST Act. Correct ?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 July 2024 When dealing with sales against Form H under the Maharashtra Value Added Tax (MVAT) regime, it's essential to properly categorize and report these transactions to ensure compliance with the VAT regulations. Here’s a step-by-step guide on how to handle such sales:

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

- **Purpose:** Form H is used for sales of goods to a registered dealer for export. It provides a way to sell goods without charging VAT as the sales are considered zero-rated exports under the Central Sales Tax (CST) Act.
- **Applicability:** Sales against Form H are treated as exports, and you need to account for them accordingly in your VAT and CST returns.

### **2. Reporting Sales Against Form H in MVAT Return**

When filing your MVAT return, you need to reflect these transactions accurately:

1. **Classify Sales as Exports:**
- **Sales in the Course of Export:** Under the CST Act, sales against Form H are zero-rated exports. Therefore, they are considered sales outside the state under section 5(1) of the CST Act. They should be deducted from the total turnover while calculating VAT liability.

2. **MVAT Return (Form 231/231A):**
- **Turnover of Sales:** In the MVAT return, these sales should be deducted from the total turnover. Specifically:
- **Deduct as Export Sales:** Report these sales as "Sales in the Course of Export" under section 5(1) of the CST Act. This deduction is typically found in the relevant section of the MVAT return where you adjust for exports or sales that are zero-rated.
- **Zero VAT:** Since VAT was not charged on these sales, they should be reported in the section where export sales or zero-rated sales are deducted from the gross turnover.

3. **CST Return:**
- **Turnover of Sales:** For the CST return, include these sales in the section for export sales. Even though you are reporting zero VAT on these sales, they must be reported as part of the turnover for sales against Form H.

### **Example of Reporting in MVAT Return:**

- **Sales Turnover:** Report the total sales turnover including sales against Form H.
- **Deduct Export Sales:** In the section for deductions or adjustments, enter the amount of sales against Form H as export sales under section 5(1) of the CST Act.
- **VAT Calculations:** Ensure that VAT is only calculated on the remaining turnover after deducting the export sales.

### **3. Key Points to Remember**

- **Documentation:** Keep all documentation related to Form H, including copies of the forms and any correspondence with the buyer. This will be essential in case of audits or queries.
- **Compliance:** Ensure that you comply with both MVAT and CST Act requirements. Incorrect reporting or classification could lead to discrepancies and potential issues during audits.

### **Summary**

- **MVAT Return:** Deduct sales against Form H under the section for export sales or zero-rated sales. These should be classified as sales in the course of export under section 5(1) of the CST Act.
- **CST Return:** Report these sales as part of your turnover for export sales.

By following these guidelines, you can ensure accurate reporting of sales against Form H and maintain compliance with VAT and CST regulations.