24 January 2015
Form C is issued by the dealer for purchasing goods from the dealer outside the state in which he resides the effect can be understood by looking at following example IF Mr A Registered Dealer in Hyderabad (AP) wants to purchase goods from Mr B a registered dealer in Mumbai. Mr. B who is selling the goods will charge VAT @ 4% or 12.5% on the goods if Mr. A issues him “C” Form then Mr B should Charge him CST @ 2% so Mr A is Saving Tax.
H-Form is a certificate issued as proof of Export. This form can be obtained from sales tax dept. When a exporter purchases the material from the sellers and exports then the exporter has to issue the Form –H to the seller from whom the goods are purchased. The seller has to obtained this form – H from the exporter and show it to the sales tax dept to get tax exemption. Along with the form – H the seller has to collect the Bill of lading (B.L) as proof of export. In case if the exporter does not release the Form – H along with the B.L the seller has to pay the Tax at the time of sales tax assessments.
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