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REFUND OF SECURITY DEPOSIT IN M-VAT

Aim (20 Points)

08 May 2009

We have paid the Secrity deposit of Rs.25000/- at the time of vat registration ( IN VOLUNTORY REGISTRATION in JAN-09 ) same is adjustable against vat payable, Now as we are having payment of Rs.5000/- up to march-09, what we sholud do, claim refund of Rs.20,000/- in march-09's return or still we can avail the credit of rs 20,000/- in next quter. as it is not input credit it is just security deposit.

please help me in this regards, thanks in advance.

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12 Replies

Sachin (Chartered Accountant) (419 Points)
Replied 09 May 2009

Dear Aim,

First of all you will surrender the registration. then you can take refund. please write me your full problem. my email id is sachinagarwalcallb @ gmail.com

R B Banwat (tax consultant) (154 Points)
Replied 14 May 2009

1. MVAT Sec 16(2) provides that whenever dealer deposits 25000/- , it will be treated as advance towards tax payable..

The section read as under

"Provided that, in the case of an application made by a person who voluntarily desires to get registered, the certificate of registration shall not be granted unless the applicant has deposited an amount of Rs.25,000/- in the Government Treasury as advance towards the tax, interest or penalty, if any, that may become due. The amount so deposited may be adjusted against the tax payable according to the return required to be filed in the year in which the registration is granted or in the succeeding year. The amount of deposit in excess of the amount due from him, by way of tax, interest or penalty, if any, shall be refunded as provided in section 50 or, as the case may be, section 51.

2. Thus you can adjust the balance amount agaianst next year liablity

1 Like

Aim (20 Points)
Replied 14 May 2009

thanks banwat .

anushree dandekar (Accoountant ) (22 Points)
Replied 24 December 2009

can we claim refund of Rs. 5000/- Paid at the time of registration as deposit.

if yes then what is the procedure.

Ganesh (Accountant) (21 Points)
Replied 21 March 2012

We have paid the Secrity deposit of Rs.25000/- at the time of vat registration, same is adjustable against vat payable, i had adjusted all the above amount in vat payable, but still i got a notice from sales tax that paid Rs. 25000/- & all amount of other returns which is adjusted in security deposit, please help me what should i do, should i give a letter to sales tax dept. for adjustment of Advance tax? if yes please send me the letter format.

thanks in advance.

Ganesh

Accountant

naveen bohra (ARTICLE ) (21 Points)
Replied 21 June 2012

As per sec. 60A after 31st May,11 security deposit cannt be adjusted against sales tax liability bt refund of full amount 25000 can be claimed by cancellation of certificate after 36 months from the month of registration.

NEETA V. SARDAR (SR. ACCOUNTANT) (27 Points)
Replied 28 April 2014

We have paid the Security deposit of Rs.25000/- at the time of vat registration, same is adjustable against vat payable, i had adjusted all the above amount in vat payable, but still i got a notice from sales tax that paid Rs. 25000/- & all amount of other returns which is adjusted in security deposit, please help me what should i do, should i give a letter to sales tax dept. for adjustment of Advance tax? if yes please send me the letter format.

1 Like