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Refund in vat

Nirav Worah (CHARTERED ACCOUNTANT) (396 Points)

29 September 2010

Dear Members

What is procedure for applying for refund in WBVAT if the company is engaged only in export and purchases packing material and paints on which Vat is charged?

Regards,

Nirav Worah

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3 Replies

k n v v s k sri kanth ( ) (564 Points)
Replied 29 September 2010

If there is no OUTPUT VAT then you cannot claim a REFUND i think, so you need to claim INPUT VAT as a expense(loss unless you cover that amount from your exported stock amount for which you pay EXCISE DUTY). Though there is no OUTPUT VAT and you paid INPUT VAT, so there is no refund available for you my dear friend. Sorry for that.

Regards

Pinky Agarwal (Chartered Accountant) (426 Points)
Replied 01 October 2010

As per my view, in this case refund can be available to you. As the final product is not exempt from VAT only export is exempted. So you can not say that there is no output VAT. If the same is not exported then you are liable to pay VAT on that. So, you should not treat your input Vat as an expense and can claim refund for that.