Refund for vat paid on purchases

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vijayanand (Querist)

01 February 2013 A seller whose purchase is Rs.3,00,000/- has paid a VAT amount of Rs.15,000/- on his purchase,and his total turnover is of Rs.3,50,000/-(ie.below 5 lacs)so no VAT is charged on sales.The question is whether I can claim refund of VAT paid amount of Rs.15,000?

Abhijit

Abhijit (Expert)

01 February 2013 Hi, if you are taken voluntary registration of VAT then you are liable to pay VAT on the amount of Rs. 3,50,000. In this case you can claim input credit of Rs. 15,000/-. So you are liable to pay on Rs. 50,000(Assuming VAT is same at both point.). And there is no benefit of exemption is available. As cenvat credit is available subject to condition that your VAT registration before the purchase of Rs. 3,00,000/-.
2) if you are not a vat dealer then you are not eligible to claim vat input. in that case you cannot claim refund.

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vijayanand

vijayanand (Querist)

01 February 2013 Dear Abhijit,I am a VAT registered dealer and my total annual turnover for the year amounts to Rs.300,000 (ie. less than Rs.500,000)i have not charged any VAT on my sales of Rs.350,000 so i have not received any VAT amount from the customers but I have paid VAT on my purchases of Rs.300,000(ie. I have paid Rs.15,000).The question is whether I can claim refund on my VAT amount paid of Rs.15,000?