100% EOU

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This query is : Resolved

Chirag B Shah (Querist)

12 May 2010 My one of the Client whose status is 100% EOU has make a sales of Jewellery locally against Form H, whether the above sales will include in definition of "Export Turnover" for claiming deduction U/s.10B of Income Tax Act 1961.

taxindiaconnect

taxindiaconnect (Expert)

13 May 2010 Certificate in form H - Sale during course of export is exempt from CST. As per section 5(3) of CST Act, penultimate sale is also deemed to be in course of export and is exempt from CST. Dealer actually exporting the goods has proof of export like customs documents, bank certificate, airway bill/bill of lading, shipping bill etc. However, the penultimate seller does not have any direct evidence to prove that his sale is exempt from tax. In such cases, the actual exporter has to issue a certificate to the penultimate seller in form H. The blank ‘H’ forms are to be obtained from sales tax authority by the final exporter.

Thus from this it is clear that sale against form H is a deemed export, hence eligible for tax deduction under section 10A/10B

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