Form h for nil sales tax

Mahavat 2101 views 1 replies

Respected Sir,

We have a order from merchant exporter. We have to supply the material upto the Mumbai port.(free on board). Further care will be taken by the merchant exporter. Merchant exporter will give us a form H for Nil Sales Tax

We are procuring material from our Vendor from same state where we are & directly dispatching it from vendor to Indian port.  Can we give form 'H' to our vendor for nil Sales Tax or he should charge sales tax to us?

Please advice.

 

Replies (1)

Mr bkramdasi,

 Only transaction i.e.sale prior to the actual export sale is exempt from CST or local tax.It is called sale in the course of export. Your sale to an exporter is exempt from tax against form H. The earlier sales made to you are not exempt and no H form can be issued for that sale by you..........mjk


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