Sale tax saving

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This query is : Resolved

Amjad Hussain (Querist)

03 January 2014 Dear Sir,
We are a export company exporting paper product.
We buy our product from local manufacturers who are not reg.as EOU.How can we bypass sale tax and other taxes on raw metirial used for making our product so as to bring down the cost to compete in international market.We give H form to our suppliers.
Please advise.

Rgds
Amjad Hussain.
ASHAR IMPEX.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

04 January 2014 You mention your state. Generally,all kinds of paper are chargeable @5% or 5.5% VAT.You have to find out the rates existing in your state.Secondly,a H form can not be issued for purchase of raw material or components used for manufacturing an exported product.H forms are to be given for purchases of goods which are directly exported.You have to pay taxes on these purchases as per rules.In many states some concessions are offered under VAT Acts for 100% EOUs for exemption of tax on purchases. Pl find out....mjk

Amjad Hussain

Amjad Hussain (Querist)

04 January 2014 Thanks a lot sir.
we are headquartered in Delhi and purchasing from U.P.

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