17 June 2009
Hi, It depends upon the class of dealer you are as per the MVAT Rules. Please refer the guidelines below on Refund under MVAT: Refund cases If the amount of set-off admissible during the period is more than the amount of tax payable, your return would reflect a balance refundable to you. The amount of set-off can be more than the tax payable for a variety of reasons, such as – Inputs are taxable at higher rate as compared with the rate of tax on output. Outputs are tax-free goods while inputs carry tax. Outputs are export sales. Outputs are CST sales which are taxable at the concessional rate of CST. Manufactured goods or trading goods are transferred to branches outside the State or are sent on consignment transfers. Apart from part of the admissible set-off which can remain unutilised, excess credit can be on account of: • unutilised portion of tax deducted at source or • refund payment order or • ad-hoc payment made is more than tax payable. Whatever may be the reason for credit in excess of tax due and payable during a tax period, you are eligible to claim refund of such excess credit. For the purpose of granting refund, dealers have been classified under two categories viz. a) specified class of dealers and b) other dealers. Refund to specified class of dealers Specified class of dealers are – • Exporters exporting out of the country or dealers selling to an exporter against form H. • A unit set-up in SEZ or STP or EHTP or a 100% EOU unit. These units have to be certified by the Commissioner of Sales Tax, 27 • An Entitlement Certificate holder availing of the benefit of incentives under the Package Scheme of Incentives (PSI). Specified class of dealers and the dealers who have made a sale in the course of inter-State trade or commerce and in the return he has shown any amount to be refundable are eligible to claim refund in each of the returns filed by them. Full amount of excess credit can be claimed as refund due for the return period. The dealer eligible to claim refund has to file refund application in Form 501. The application has to be filed with the Refund Branch. The Refund Branch may ask for Bank Guarantee and any relevant information for checking correctness of refund claimed. Normally, refund would be granted within one month from the receipt of Bank Guarantee or within three months from the date of receipt of refund application in Form 501, or as the case may be, the date of recipt of the additional information, whichever is later. Refund to other dealers Other dealers are not eligible to get refund in each of the return filed. They are required to carry forward excess credit to the next return within the same financial year and claim refund of excess credit in the return for the period ending March. The dealer claiming refund in March return has to make refund application in Form 501. The application has to be filed with the Refund Section. Normally, refund would be granted within six months of the end of the year to which the return relates. However, if you are a newly registered dealer, refund would be granted within six months of the end of the year succeeding the said year.
For full MVAT Guide refer this link http://www.mahavat.gov.in/mahavat/VATtaxpayerguide.pdf