Nil vat tax against form h

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haneefbengre (Querist)
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11 August 2015 Respected sir,,,
Any one can Answer the question.

We are the Exporter of Fish products,..so we are using Corrugated box for packing purpose.Corrugated boxes purchase from local supplier and also for using export purpose.also we paid local vat tax.

Now my question are- if We have issue Form H and BL (Proof of Export) to the supplier against purchase of Corrugated Boxes from Local Dear, it should be local Vat Tax nil or what ...
sir kindly reply the same.

as received some related information is below.
H FORM DETAILS FOR EXPORTER

What is H-Form

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.

It will be safe for the seller if he can get a D.D. for the tax amount of the goods which is sold to the exporter for the export purpose. Because sometime the exporters fail to provide the form – H to the seller due to unknown reasons, at this time this D.D. which is collected will be off much helpful to the seller.

Basic Points of H-Form

1) H-Form is issued by the exporter to the supplier for every Quarter.

There are four Quarters for one year:
April, May, June (1st Quarter)
July, August, Sep (2nd Quarter)
Oct, Nov, Dec (3rd Quarter)
Jan, Feb, Mar (4th Quarter)

2) You must create one excel sheet for one supplier for one Quarter.

Eg a: If you purchase material from one supplier in different quarters you have to prepare the different excel sheets. sheets for this supplier. one for 2nd Quarter and second sheet for 4th Quarter.

Eg b: If you purchase material in one quarter from one supplier on different invoices only one excel sheets is enough.

3) You must have the following data for issue H-Form

Supplier TIN Number
Supplier Company name & address
Suppler Invoice copy ( For Invoice number, date, qty and value etc)
Foreign Buyer Agreement no and date (Eg: Purchase order no or L.C.Number etc)
Note: Agreement number must be before the Invoice number.

4) After applying H-Form in online, you will receive H-Form from CDSC.

5) One H-Form contains original, duplicate and counter foil.
Counter foil should be retained by the issuer. And the remaining original and duplicate should be sent to the seller with proof of export ie., Bill of Lading (B.L).

6) The counter foil, original and duplicate should be duly filled and signed.

haneefbengre

haneefbengre (Querist)
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11 August 2015 sir please reply that above quarries.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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04 August 2024 ### Understanding H-Form and VAT Implications for Exporters

#### **H-Form Overview:**
H-Form is used in India by exporters to claim VAT (Value Added Tax) exemptions on goods purchased for export. It serves as proof that the goods purchased locally are intended for export, thereby making them eligible for VAT exemption. The seller uses this form to claim VAT exemption on their sales to the exporter.

#### **Key Points Regarding H-Form:**

1. **Issuance and Submission:**
- **H-Form** must be issued by the exporter to the supplier.
- The supplier should collect H-Form from the exporter and submit it to the Sales Tax Department to claim VAT exemption.
- Along with the H-Form, the supplier should obtain proof of export, such as a Bill of Lading (B.L.).

2. **Documents Required:**
- Supplier’s TIN number.
- Supplier’s Company name & address.
- Supplier’s invoice copy with details (Invoice number, date, quantity, value, etc.).
- Foreign buyer’s agreement number (like Purchase Order number or L.C. Number) must precede the invoice number.

3. **Quarterly Filing:**
- H-Form should be issued quarterly.
- For each quarter, maintain a separate record for each supplier.

#### **Your Specific Situation:**

1. **Purchase of Corrugated Boxes:**
- **Local VAT Paid:** When you purchase corrugated boxes from a local supplier, you have paid VAT on this purchase.
- **Using H-Form:** If these corrugated boxes are used for exporting your fish products, you need to issue an H-Form to your supplier.

2. **VAT Exemption for Supplier:**
- **VAT Refund:** With the H-Form and proof of export, the supplier can claim VAT exemption on the sale of the corrugated boxes. Essentially, your local VAT should not be applicable because you are providing the H-Form as proof of export.
- **Nil VAT:** The supplier should not charge VAT on the sale of these corrugated boxes if they have received the H-Form along with proof of export. The VAT amount paid on such purchases should be refunded or adjusted by the supplier if they have already collected it.

3. **What If H-Form is Not Provided:**
- If the H-Form is not provided to the supplier, they will be liable to pay VAT on the sale. This VAT amount will be a part of their tax obligations during their sales tax assessment.

#### **Steps to Take:**

1. **Issue H-Form:** Ensure that you issue the H-Form to your supplier along with the proof of export (like Bill of Lading).
2. **Ensure Compliance:** Verify that the supplier processes the H-Form with the Sales Tax Department for VAT exemption.
3. **Maintain Records:** Keep proper records of all H-Forms issued and received, along with supporting documents.

#### **Additional Notes:**

- **Due Diligence:** Make sure all details in the H-Form are correctly filled out and all supporting documents are complete to avoid issues.
- **Professional Advice:** Consult with a tax professional or legal advisor to ensure that all procedures are correctly followed and compliance is maintained.

This approach will help you ensure that the VAT on the corrugated boxes is correctly handled according to the export regulations.

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