Earlier on this issue CA Mr. Ravindran and myself have given eonugh material dealing with H form, its nature and scope. Now this question deals with purchase against H form. In fact, object and target for such purchase is not clear to make precise reply as there is special use of H form in the course of export transactions.
It is made clear that on satisfaction of certain conditions relating to genuine export of goods throuoh a recognized exporter, transaction is tax exempted for EXPORTER on purchase and sale both ends. In order to claim exemption , genuine export supported with proof of export/documentary evidence is a must which will be provided by such exporter with H form obtainable from Sales tax/commercial tax department of wherefrom such exporter is registered as dealer under CT/CST Act to 1st point seller from whom exportere purchases the goods. Such H form with all supportings will enable the first point seller also who supplied/sold the goods to exporter intending for the purpose of export , to claim tax exempted sale. In other words from first point to last point transaction with the help of H form shall be completely tax exempted being treated as export transaction (Out of India sale). Please also go through the earlier clarifications referred to understand better.
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