Form H - SEZ to 100% EOU

[Raja krishnan]

Dear Experts,

"A" is a SEZ unit, supply/sales of finished goods to a 100% EOU, is here in after refer "B".

Now "A" is advise to "B" to provide & submit Form H, for the above sales transaction, is it correct one under TNVAT act.

Please reply.

[YAGAY and SUN]

Dear Raja Krishnan,

Form H is required for export of goods as such through Third party. If goods are being exported as such by B, then, there would be requirement to submit Form H. Some State like UP, Maharashtra and Tamil Nadu for the purpose of mitigating the revenue leakage, insist to obtain Form H.

In our opinion, there is no harm to provide Form H in this scenario.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

AI Summary

Form H requirement: provide Form H when goods supplied to a 100% EOU are exported through a third party to address state revenue concerns.
Form H is required where goods are exported through a third party; if the 100% EOU purchaser effects export of the supplied goods as such, Form H may be required. Certain States require Form H to mitigate revenue leakage, so providing Form H in a SEZ-to-EOU sale is a permissible and prudent compliance measure.