Enquiry regarding exports

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Sir, I have start a business of exporting good to outside india....I just want to know what is form H and form C in sales tax.....and how it works in reducing tax liability...

Replies (1)

Hello Friend,

form H is for deemed export made by a delaer. say for example u sell a certain commodity to someone who is an export oriented unit then he issues you a form H against which you get an exemption under the state VAT act for entire value of sale made by you to the dealer. you shall not charge VAT from the dealer and before trading you should ensure that the company you are trading with is an export oriented unit. i cannot mention the section under which the exemption is available as it may vary state to state. 

secondly about your C form, as per CST act there is a schedule of declared goods whose tax rate are 4%. when such goods are sold outside the state to a registered dealer tax will be charged at a concessional rate of 2%.

adding to this if you yourself want to export then there are further formalities which needs to be fulfilled such as licence and all(m not aware of all i guess the practitioners will know better) .. and sale that you make does not need a form H you will give form h to dealers whoo sell you. for getting an exemption on sales made by you you should collect exemption certificate from custom of the country you are trading with.

i hope that'll answer your question


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