Trading Company claiming Input tax credit

Dear all,

I'm running a Trading Company in Chennai dealing in supply of packing materials to the Companies located in SEZ.

I have VAT & CST registration for the same. 

 

I'll purchase materials inter state as well as intra state. Certain materials has been purchased from Delhi (Inter State)

for which I paid the input tax ( CED + CST => 8% + 2% => 10% ) to supplier alongwith material cost. Certain materials

has been purchased from Chennai (Intra State) for which I paid the input tax ( CED + VAT => 8% + 12.5% / 4% => 20.5% /

12% ).

 

I will sell the goods at a profit margin @ 30%. Out of my profit margin, in the worst case I've to pay input tax @ 20.5%.

I can't able to charge the same to my Customer bcoz the Customer located in SEZ. 

 

My query is, what procedure should I follow in order to claim my input tax as refund. Whether any registration or forms to

be filed for the same in order to claim the input tax as refund?

Replies (2)

Hello Dear

 

u r not eligable for Refund of input Tax, first of all u r not eligable for input tax cdredit

 

You can register as "Merchant Exporter" under Central Excise.  Then hou can get the products without Excise duty by issuing of CT-1 form to the manufacturer & clear the same to SEZ without ED.  Under Sales Tax, kindly check the refund options.

Refer caselaw Vasanth & CO VS CCE Tirchi.  for getting product without ED under issue of CT-1

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