H Form (VAT)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2011 Dear Experts,

We have a 100% Export Oriented Unit in Maharashtra. Can We Purchase Capital Goods, Ram Material against "H-Form" (Vat Nil Against H-Form) from Indigenous Suppliers.

Plz Tell me.

Thanks & Regards
Sushant Todkar
sushanttodkar@ymail.com

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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01 July 2011 Mr S Todkar,
You should not use 'H' form for buying raw materials and capital goods from indigenous suppliers. 'H' forms are used to buy exported goods from suppliers without the local tax. This is called sale in the course of export.The goods purchased using 'H' forms are to be exported in the same form.They can not be used as raw material in a manufacturing process.Same way capital goods also can not be purchased.Special concessions are available in each State for the units located in special economic zones for making purchases without tax. Please check up with your state industries and commerce department and LVOs for details.
MJK