VAT refund matter

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This query is : Resolved

Sudhanshu Bhasin (Querist)

08 November 2008 I have filed my Q2 2008 returns with VAT dept.

I have made purchases in Local and made export sales that known Central.

My question is -:

When I make purchase of local - My input tax increases.

And when I make Export sale (Central) I have valid for the claim on the output ?

Also, when I buy goods from the local market with description as "Hamam Soap" and when I export I mention "Soaps".

Will this affect my refunds ?

vinod

vinod (Expert)

08 November 2008 NO

Sudhanshu Bhasin

Sudhanshu Bhasin (Querist)

08 November 2008 Ok.

Could it be more clear Mr Vinod.

I am new in Business and require helps of experts like you guys.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

08 November 2008 The VAT can be set off against the local sales, what is the difficulty?

Sudhanshu Bhasin

Sudhanshu Bhasin (Querist)

08 November 2008 Yes, VAT is only chargeable on local sales.

What I meant is, the dept is not related to the description of the goods ?

Because like I explained earlier, I buy Hamam soaps with VAT paid local Delhi purchase.

And I export with description only as "Soaps"

Because this is what I exported and just have a confusion.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

08 November 2008 One to one relation is not necessary to claim input tax credit. This is the basic principle of VAT irrespective of the state you belong. In otherwords input tax of 'Hamam soap' can be set off against the tax payable on 'Soap'.

Sudhanshu Bhasin

Sudhanshu Bhasin (Querist)

09 November 2008 Thank you guys.

For now you have solved my query.

When I need more on this I will call you all again.

Thanks you

Regards,
Sudhanshu

I have rated you all.

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