TaxTMI 
TaxTMI 
we are selling goods to a delhi dealer. we are also registered in delhi. the purchasing dealer is purchasing goods to export. they want to purchase against "H' form. whether it is legal to sale goods to delhi dealer against "H" form.
Applicability of "H" Form in sale of goods
22 Jan 2010 
5 Replies 
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H form applicability permits sales to a registered dealer for export while preserving input tax credit for local VAT.
A seller may sell to a dealer in the same State against an H form when the purchasing dealer acquires goods for export; permissibility depends on the buyer's export purpose rather than shared State registration. Export sales are treated as zero rated for VAT, and contributors advise no reversal of input tax credit for exported goods. The discussion raises, without resolving, whether input tax credit attributable to export sales can be applied to offset the seller's VAT liability on other local sales. (AI Summary)
A seller may sell to a dealer in the same State against an H form when the purchasing dealer acquires goods for export; permissibility depends on the buyer's export purpose rather than shared State registration. Export sales are treated as zero rated for VAT, and contributors advise no reversal of input tax credit for exported goods. The discussion raises, without resolving, whether input tax credit attributable to export sales can be applied to offset the seller's VAT liability on other local sales. (AI Summary)