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H form clarification

Sridhar (Student CMA) (77 Points)

03 January 2014

Dear frnds and experts,

Kindly tel me the procedure to obtain h form for cst exemption. Can we get that only after export is done or its like c form we can get for each quarter ?

Thanks in advance.

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6 Replies

MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 03 January 2014

Mr Sridhar,

A H form can be obtained on-line or directly from an office only after exporting the goods so purchased. There are many details to be filled in the form regarding the export transaction. The foreigner's purchase order no ,your invoice,no and date,qty,descripttion,bill of lading shipping agency ,or Air freight bill,airport/sea port etc as required in the form are to be furnished.Then only the form can be downloaded/printed........mjk

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Sridhar (Student CMA) (77 Points)
Replied 03 January 2014

Thank you Mr.MJ Krishnamurthy. It made me clear. What if we use the purchased material in process of manufacturing and exporting the final product ? Does the same procedure apply thereto ?

B.N.Dharmendra (Senior Manager Indirect Taxation) (136 Points)
Replied 06 January 2014

Dear Sir,

When u buy from a supplier based on your export order and informing the supplier to mention in the Invoice against Form-H to avoid paying tax and you export the material as such then its sale against Form-H, but when buy the material and process in your factory to make some other material and exported by you will become Export Sales (Direct Export) both the category falls under Zero Rate Sales as per CST Act. In the second case you have to pay tax to purchase the material and you can claim it as ITC (input tax credit) in case of TN if you purchased the material locally you can claim the full tax on purchase as ITC whrease incase of interstate purchase its not possible to claim as ITC. So it depends on the State VAT Act

Regarding getting the Form-H from the Sales Tax Department it depends on the computerisation in the State, in case of Tamil Nadu only the Form-C/F is computerised the Form-H is maual so you can collect it from the department in advance.

Sridhar (Student CMA) (77 Points)
Replied 06 January 2014

Dear sir, Thanks for your reply. For instance I'm purchasing a material from another state and using it as a raw material i.e. A part of the finished product and exporting the finished product. In this case will form H be applicable or no way to claim the CST input ?