How to get exemption of Sales Tax under exports.

 

How to get exemption of Sales Tax under exports?

 

This is one of the other common clarifications, how to claim sales tax under exports, how to obtain form c from sales tax department, what is form c in exports, procedures to claim sales tax benefit under exports etc.

 

Any exporter or importer, let them be a merchandiser or manufacturer, registration with local sales tax office at their jurisdiction is essential. In order to claim any benefits under sales tax authorities, the registration of your firm is mandatory. Once after registering your company details with the sales tax authorities, you are eligible to obtain necessary exemption forms and certificates time to time once you need to claim benefits from sales tax under exports.

No sales tax is involved under export sales. If you source out any materials from a third party seller for your export purpose, the said supplier is exempted from sales tax as the materials he supplies to you is for ‘export purpose’. However, the said supplier can avail benefit of sales tax only if he also registered with sales tax authorities.
Import or procurement of all types of goods including Capital Goods specified by government is free of duty except prohibited goods.

 

The sales tax authority revises the facilities to exporters time to time. You may approach your nearest Sales Tax Department to know more about the exemption available under exports and imports.  Also read How to get export order from foreign buyers?

 

Would you like to share you knowledge about the sales tax exemptions to exporters and importers?

 

The above information is a part of Import Export course online


Write below your comments to add up information about sales tax benefits and exemptions to exporters and importers.

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The information provided here is part of Online export import training guide 



Comments


index india surgical and pharmaceutical services: Sir, We are one of the merchant exporter of medicines and surgical items in trivandrum,kerala state.Now we have to export some of our items to malidivies.our quiestion is for this export we have to make an VAT bill with tax or with out Tax ,we enquired with our consultant ,they said there Tax is exempted for export ie we purchasae the goods with tax paid from local distributors,so again no need to take tax from the forign client,and this will not be refunded in out put tax. To avoid our confusion give us a proper reply at the earliest.

Mani: We are in chennai, we are going to purchase materials from kerala, and the same should be exported from cochin, kerala to other countries. whether we should give to H form to kerala customers, even if the materials not entered in to Tamilnadu.

Nishant: Hello, Thanks for this details. But i want to know about particular case, like mine.I own a Proprietorship firm for diamond exports registered in Surat,Gujarat,India. I don't have CST/TST TIN No., as there is no sales tax for the purchase/sell of the diamond. I also have exported 5 times this year. What is the procedure to get "Exemption Certificate"?

Vivek : I request you to please guide me on the following: 1) For opening of LC whether the bank (Issuing) bids for foreign currency on our behalf with RBI and on successful bidding we get the LC opened. 2) Is the above known as pre - negotiation period. ie from the time LC is opened(confirmed) till the documents are negotiated. 3) On opening of LC - and shipment by exporter. The exporter forwards the documents to his bank (Advising). 4) As per my knowledge the LC involves the following:- i) At sight - when documents are received by the advising bank it will forward to the Issuing bank and the Issuing bank after checking the docs will release payment. This enters the post negotiation period. The amount will be then debited to the importers account as per the terms between importer and bank. Please mention the rate at which this liquidation takes place. ii) Deferred Payment: Please explain this in detail if possible. iii) Acceptance: Please explain this also. I am of the opinion in the case of acceptance Bill of collection is compulsorily required which is to be accepted by the issuing bank. In other cases also drafts can be used. Pls mention in such cases who is the drawer drawee and payee and why? iv) Negotiation:- The documents are negotiated by the advising bank to negotiating bank and the negotiating bank pays the advising bank at discount. The negotiating bank then forwards the documents to Issuing bank and collects the payment. Please let me know whether this is done so that the time taken by the issuing bank / confirming bank to scrutinize the documents is reduced. Please provide details on the above if possible and also let me know if the above is correct. Please also let me know the favourable terms & conditions we have to enter with our banks in case we are importers(Trading activity). Like the period of credit. Exposure Limit - Foreign & Local currency. Interest rates pre & post neg. Refinancing terms. Revolving LC Back to Back LC

rajesh: hai i request you to guide me . i want to import radial truck tyres from china. is there any exemption on sales tax for truck radial tyres in andhrapradesh

Bymer Elastomers: Dear Sir, We have manufacturer of Rubber Products and we have developed some products for our Sweden customer, we have charged tool cost for developing new Rubber Mould (but we have not send this tool to our customer its lying at our end only & its life is 3-5 years as per agreed terms with our customer). We have raised commercial Invoice and ER-1, also make Excise Invoice, without charging duty and sales tax for payment. Now my question is above procedure is ok? or shall we paid local sales tax on this transaction. Please confirm, Thanks & regards, Uday

gupta: What are the documents I have to produce to get tax exemption for the hulledsesame seeds for export

sharon babu: We are 100% exporting firm we export around 4 containers / year of air-conditioning part show to get exemption of central sales tax

sharon babu: We are 100% exporting firm we export around 4 containers / year of air-conditioning part show to get exemption of central sales tax

mallesh: while filing shipping bill for duty free goods and under epcg scheme, Pls check and confirm whether the service tax refund is to be mention in shipping bill copy...

Ramsha goud : I am Ramsha goud from hyderabad telangana. we manufacture animal feed for our own poultry consumption, i want to import maize and soyabean oiled cake from south africa.so please can you provide me the information about procedure to deliver the goods at sea port. And can you tell about government taxes and rules.

Ahmed: I am 28 Yrs old working in a manufacturing company, i started an export trading company a year back & have been able to generate small orders & working on them. I want to know if i buy finished goods for the purpose of exports, should i need to pay all the taxes? (VAT, ED), if not how can I exempt from this, some one told me there is an H form available, how to get that H form. No one is giving proper guidance, kindly guide me, i have been paying all the taxes until now. Also i want to know how to file the tax returns, the consultant who helped us in our registration procedure is not providing us with proper details.

barada prasanna parida: i am a exporter.now i have to export some material from kolkata to bangladesh.i dont have any salestax registration or cst registration.but the material what i will export ,that i have to purchase from delhi.so what i have to do now?beacuse to purchase from delhi and to bring that item to kolkata it needs C FORM

Pramod Kumar G: Dear Sir, We started manufacturing pencils and planing to export our product. I would like to know that is it mandatory to have CIN and what are all other documents required. Regards, Pramod Kumar G

Raman Singh: Dear Sir, I am trying to export drilling instruments from Andhra Pradesh, sir I want to know about tax benefits and as per my consultant I can get 2% tax benefit from Indian Government,Is that real or not let me know please.

sanghamitra chakraborty: sir, i am a registered dealer under vat and cst act based in west bengal. i do resale some plant & machinery and tools to my overseas customer at bangladesh. the same was purchased by me from west bengal through tax invoice after giving appropriate tax as applicable. my overseas customer is not a exporter. he consume the same materials for his manufacturing purpose. in this case is it necessary to issuing form H to anyone ? please clarify. thanks. regards, sanghamitra

Suhail: If i export car parts to nepal how much tax will be refunded by the government as 14.5% tax is on car parts in uttar Pradesh

jyotiprakash.nayak.cfp : Can you please tell how the taxation calculate for a proprietorship exporting firm.. Is there any Tax deduction on generated income for Rice Or any particular products exporting from India..

paban ghosh : Let me thank you for the beautiful website which is very handy for the exporters and importers of India. I am writing this mail to you to know a specific information from you. Sir can you tell me if exporting rice non basmati ( Gobindobhog from West Bengal ) has any OF exporting tax BY THE GOVT INDIA on exporting to to Saudi Arabia ? In addition to this, can you suggest which mode of transporting the rice would be less risky and beneficial i.e FOB or CF ?

Mark: In order to get VAT exemption on exports from India is it necessary to make payments in foreign currencies or can we also pay directly in Rupies?

Jyoti Prakash M: Can you please tell how the taxation calculate for a proprietorship exporting firm.Is there any Tax deduction on generated income for Rice Or any particular products exporting from India.

soheb rathore: if i purchased good against "form H" for export i purchased good in vat period but it will be export in GST period.. could i'll get form H

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