Form- h

AKSHIT MALHOTRA (C.A Final Student) (1337 Points)
Replied 26 December 2013

satya sir form h is for exports so there is no tax applicable.

as far as audit is concerned i don't know b'coz i hav nt performed it yet.

hope this reply helps you in some way.

1 Like

Aniket Gupta (Accountant ) (81 Points)
Replied 27 December 2013

I M SUPPLIER OF GOODS WHICH IS EXPORTED BY BUYER. AT THE TIME OF BILLING WE ISSUE TAX INVOICE WITHOUT CST/VAT AND THEY ISSUE US FORM H IN 2 COPIES ALONG WITH BILL OF LADING PHOTOCOPY AS A PROOF. THIS FORM H HAS TO BE SUBMITTED TO THE EXCISE DEPARTMENT QUARTERLY.

PLEASE GIVE ME MORE INFORMATION, WHY R U ASKING FOR FORM H IN DETAIL .... FOR MORE APPROPRIATE ANSWER

satya narayana (Student CA IPC / IPCC) (124 Points)
Replied 27 December 2013

Dear Aniket Gupta,

I am a CA student and doing my articleship. We have 3 to 4 Cotton Manufacturing Companies to audit. While we doing our audit i found in sales that in some cases they are not collecting CST by obtaining Form- H. I dont know about Form- H. so for knowing that i posted my query.

By asking so many people, now i got some clarity about Form- H. One more thing if the buyer didn't give you the Form- H after the completion of the respective quarter, then you will be laible to pay the tax amount i.e. CST to the department.

CA Dharmendra Kaushik (Chartered Accountant) (28 Points)
Replied 27 December 2013

Dear Satya,

Basically Form H is issued by an exporter to manufacturer or trader dealer in lieu of non payment of VAT/CSTapplicable on that particular item.

Manufacturer or Trader dealer must write on bill "Against Form -H".

If in any case Exporter not provide form -H Manufecturer or Trader dealer is liable for payment of Tax with interest.

Thanks.

1 Like

satya narayana (Student CA IPC / IPCC) (124 Points)
Replied 28 December 2013

Dear Dharmendra Kaushik sir,

Can you specify the rate of interest?

NOUFAL (ACCOUNTANT) (762 Points)
Replied 28 December 2013

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.

GIRIDHAR DANDE (Cost Accountant) (1956 Points)
Replied 28 December 2013

AS PER CENTRAL SALES TAX ACT 1956

As it relates to levy of tax on sale or purchase goods taking place in the course of export of the goods out of territory of India or in the course of import of the goods into the territory of India, Article 286 of the Indian Constitution prohibits Indian States from imposing any tax on such sale or purchase. In the same Article of the Constitution, power of formulating principles for determining when a sale or purchase shall be deemed in the course of export or import has been given to the Union Parliament. The said article 286 runs as under:-

“Article 286. Restrictions as to imposition of tax on the sale or purchase of goods.-

(1) No law of a State shall impose, or authorize the imposition of, a tax on the sale or purchase of goods where such sale or purchase takes place-

(a) outside the State; or

(b) in the course of the import of the goods into, or export of the goods out of, the territory of India.

Section 5 of the Act runs as under:

When is a sale or purchase of goods said to take place in the course of import or export.-

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.

sandeep (student) (188 Points)
Replied 29 December 2013

Rightly said h form is issued when manufacturer or trader sale the goods for export outside india ...then to avoid tax liability the dealer has to submitted h form with sufficient details in the prescribed format to the department ..with in said period