Don (ve) (24 Points)
08 July 2014Hi I have an business in which I Charge Service Tax on invoices
& Some materia I sold i.e CD on which I put MVAT
My query is that, MVAT Sale is avery rare i.e 1 invoice in every 100 invoices
but I have so many bills on which MVAT input I took & claim refund every month
Is there any law regarding not to claim refund
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 20 July 2014
Dear DON
Yes there is a law which is applicable to the business in which you are dealing.
You are hit by the provisions of Rule 53(6) of MVAT Rules. According to this rule you cannot claim set off for the purchases made by you since more than 50% of your business consists of providing services.
You can claim set off "ONLY" on following :
1. Set off on plant and machinery purchased
2. The goods purchased and sold within 6 months of the purchase date.
Hence in your case you cannot claim refund.
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