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Interstate and local form h

MANOJ (Articled Assisstant) (32 Points)

26 December 2012

Dear Friends

There are 3 parties A, B and C.

C is exporter in Maharashtra,

A is supplier from Gujrat and

B is trader in Maharashtra.

B has purchased goods from A and sold to C.

The goods are exported to foreign country.

C will issue Local Form H to B.

The question is whether B can issue Form H to A as the sale is the last sale in course of export?

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Ramakrishna Kamat (CA) (76 Points)
Replied 28 December 2012

Section 5 of CST Act

(3) Notwithstanding anything contained in sub-section (1), the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods out of the territory of India shall also be deemed to be in the course of such export, if such last sale or purchase took place after, and was for the purpose of complying with, the agreement or order for or in relation to such export."

Form H can not be issued for purchase prior to penultimate sale. It can be issued only for sale immediately prior to the export. So B can not issue form H to A.

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