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Querist : Anonymous (Querist)

08 May 2012 what are the difference between Form H & proof of Export.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 May 2012 Form-H is required for doing sales transaction with
interstate for availing central sales tax exemption (CST) because purchaser is doing transaction for supplying the products to overseas client.

explanation purpose Noted that:

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.
(2)
Parliament may by law formulate principles for determining when a sale or purchase of goods takes place in any of the ways mentioned in clause (1).
(3)
Any law of a State shall, in so far as it imposes, or authorize the imposition of,-
(a)
a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce; or
(b)
a tax on the sale or purchase of goods, being a tax of the nature referred to in sub-clause (b), sub-clause (c) or sub clause (d) of clause (29A) of article 366,

be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify.”

For the purpose of discharging burden cast on it in clause (2) of Article 286 of the Consitution, the Parliament, for the purpose of defining sale or purchase in the course of export or import, has enacted section 5 of the Central Sales Tax Act, 1956. Section 5 of the Central sales Tax Act, 1956 (hereinafter referred to as the Act) is part of Chapter 2 of the Act.

regards,

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