25 December 2009
My company is engineering Ltd. co. & involving in fabrication & erection work . it is registered Under VAT (Rajasthan)not for WCT but our client deducted WCT while making payment. how can we get it as refund? what is the accounting treatment?
This i sthe major issue of Rajasthan customers are deducting WCT on Supply also when already paid VAT.
The same problem i am facing in my company. My company's more than 100 MINR is blocked in WCT dedcution. We had already filed the case in Honable High Court regarding this WCT deduction.
There is no potion to adjusted with output liabilties but You have to follow the same: * Collect the WCT Certificate from customer on monthly or Qtrly basis. * Before taking the WCT Certificate check detail in prescribed format with the deposited challan amount. * Use this amount as a input or tax paid. Example you out is Rs. 100 and WCT is Rs.60 then pay only Rs 40. * At the time of assessment take the verification of deposited amount or RCR from department after that you are eligible to get the adjustment of refund of the same. * Now as per current seniro you can claim the 50% refund on Qtrly basis also but issue will be arrise that verification of challan amount, in this our Rajasthan Sales department is one year back. * so as per me you can take the refund of these WCT amount after assessment only but you can adjust with current liabilty.
For you information last i have collected 16 MINR refund of WCT from Jaipur Sales tax department.
if there is any further queary please let me know Regards
CAclubindia
