Amount of Form H

[VIjay Lagad]

 We had sold some goods against Form H. In the invoice we have added cost of packing & forwarding to the party ? Now party had issud us Form H for Cost only & not for the cost of packing & forwading. Is it correct or we should demand Form H for all amount (Inclusive of packing & forwarding)

Thanks & regards

Vijay Lagad

[YAGAY andSUN]

Dear Vijay,

Kindly refer Section 2 (25)  of the Maharashtra Value Added Tax Act wherein Sale Price  means the amount of valuable consideration paid or payable to a dealer for any sale made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged. 

Therefore, the value of Form H will be gross up of cost of packing and forwarding charges.

Thanks & Best Regards,

Pradeep Khatri

[VIjay Lagad]

Dear Sir, Would you please provide us any notification or document for issuing of Form "H". So as to ease us to confirm the case.

 

Thanks & Regards

 

 VIJAY LAGAD

[YAGAY andSUN]

According to us, there is no need to provide the tax laws, definition of sale price is sufficient as mentioned in the Section 2 (25) of the MVAT Act.  Further, you may also check it from your counsel.

AI Summary

Sale Price includes packing and forwarding; Form H value must be grossed up to include such charges. Packing and forwarding charges, when invoiced as sums charged by the seller in respect of the goods at or before delivery, form part of the Sale Price and therefore the value to be reflected for Form H should be grossed up to include those charges.