Sale under form H - Certificate of Export

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Ketan (Querist)
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04 May 2010 Hi, Would be great if helped.
Case: I am a distributor for a HUL, supply goods in bulk to companies who reuse them in their products. I have a order to supply a product which is going to be exported to their factory. I have to sell under form H.

- How does the transction take place. I am told that there will be no CST applied since it is on H form.

The client will issue me Form H along with a copy of bill of Lading.

- Now I buy @ 5% VAT and supply without TAX then my 5% will keep accumalating where by I have to claim for Refund in year end... is there a way out???
can I purchase products from HUL under Form H>> whereby HUL does not charge me VAT...

Please advice on urgent basis...

Ram Avtar Singh

Ram Avtar Singh (Expert)
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04 May 2010 Under DVAT, your sales may be of the following types:

"Taxable Sales" are sales on which you have to charge tax, and you will be able to claim input tax credits on purchases of inputs for use in making these sales.

"Exempt Sales" are those sales that are exempt from tax, and no tax credits are allowable for purchases for use in making these sales.

"Non-Taxed Sales" are sales that are not subject to DVAT, but you may claim tax credits on purchases related to these sales. They consist of inter-state and export sales from Delhi.

Type of Sales Tax Payable Input Tax Credits Allowed
Taxable Yes Yes
Exempt No No
Non-taxed No Yes

Ram Avtar Singh

Ram Avtar Singh (Expert)
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04 May 2010 It meens as per Dvat Export sale against form H is Taxed sale. you can claim input vat on purchase for export sale purpose.

but see you state vat rule.

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Ketan

Ketan (Querist)
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04 May 2010 Sirji,
I am under MVAT law... in my product there is 5% VAT... Which I need to sell to my client under Form H for Export basis...

So can HUL for this transction bill me without VAT and inturn I give him some Form...
Can I issue a H form to HUL for buying product and resell to the client for Export>>>

Ram Avtar Singh

Ram Avtar Singh (Expert)
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04 May 2010 NO, you will purchase on vat, take credit of vat. and export sale against form H (no vat/cst to be charge on export sale)

Amit Bajaj

Amit Bajaj (Expert)
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08 May 2010 Input credit that one will get on purchase of goods which are sold to an exporter against H form, can be claimed as refund from the Department.

Sale against H forms is considered as zero rated sales or exempt sales. its also called penultimate export under the CST Act.

H form can be issued by only the person who is making a direct export and not by the penultimate exporter.

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