Can One Buy Goods against H-Form without VAT reg. ??

[Kishan Barai]

Respected Sir/Madam

Can a merchant exporter purchase goods from manufacturing units against H-form without his VAT reg ? or VAT reg is required for merchant to purchase goods against H-form for exports. ??

please enlighten

Thank you in advance.

[MUKUND THAKKAR]

if goods purchase by marchent export and export the goods direct from the place of saler ,need not pay the vat. providing H form is sufficent for getting tax exemption. without vat registration H form is not possible.

[Kishan Barai]

Thank you very much MUKUND THAKKAR Sir.

[Suryanarayana Sathineni]

Dear Friend,

According to me, H form is issued by the ultimate exporter who purchases the goods from the manufacturer and use such goods in the ultimate Export Product. Further, as already stated , without VAT registration, issual of form H is not possible.

The situation, mentioned by you is not fit into H form issue and since a merchant exporter is involved in the scenerio, at the most he can issue CT-1 and direct the manufacturer to export the goods directly on his behalf.

Regards

Suryanarayana

[Ganeshan Kalyani]

I endorse the views submitted by Sri Mukund ji and Sri Suryanarayana ji that how would you apply for Form H if you do not get registered under VAT Act. Registration is essential here . Thanks.

[Kishan Barai]

Respected Sri Suryanarayana ji & Ganeshan Kalyani Ji

Thank you very much for response....

From the response of Suryanarayana sir, I would like to clarify following things

As per my knowledge CT - 1 is a certificate on the basis of which a merchant exporter can procure excisable goods without payment of duty.

H- Form is used by merchant to evade VAT from bill issued my mfg co. ?

So will H-Form & CT - 1 form both will come in picture or only CT -1 from in case of Factory stuffing ?

As per your reply for only CT -1 not H-Form "on his behalf" means shipping bill in name of mfg unit or merchant exporter ??

[MUKUND THAKKAR]

So will H-Form & CT - 1 form both will come in picture or only CT -1 from in case of Factory stuffing ?

H - Form will be issue after the completion of sales, and CT-1 is require during the time of clearance for export. CT-1 is not any connection of factory stuffing. CT-1 is pertaining to get it exciseable goods with out payment of excise, subect to submission of POE. stuffing permission get seprately by merchent exporter.

As per your reply for only CT -1 not H-Form "on his behalf" means shipping bill in name of mfg unit or merchant exporter ??

Shipping bills will be name of Merchent exporter and appear name of manufacturer as sportting mfg.

[Suryanarayana Sathineni]

In the event of CT-1' the question of form H does not arise since the goods being exported by a manufacturer,s premises on behalf of the merchant exporter

Regards

surya

[Kishan Barai]

Thanks a lot Surya Narayana Sir & Mukund Sir.

Now I got it

VAT is charged when goods are sold outside the factory, but hear the goods are sold inside the factory for exports, so no chance of H Form in Factory stuffing.

H form is used when a merchant want dock stuffing or ICD stuffing.

AI Summary

H-form VAT registration requirement bars merchant exporters from obtaining H-forms without VAT registration; CT-1 governs factory-stuffing exports.
Form H issuance requires the exporter to be VAT registered; H Form is issued by the ultimate exporter who purchases and uses goods in the exported product. For exports conducted from the manufacturer's premises (factory stuffing) Form H does not apply; CT 1 is used at clearance to obtain excise relief for excisable goods, with the shipping bill in the merchant exporter's name and the manufacturer shown as the supporting producer.