Form h for nil sales tax

bkramdasi (MBA) (131 Points)

26 June 2013  

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.