Refund of vat

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mukesh

Article

30 Points Posted on 01 February 2014

Dear All,

One of my cleint had Purchased Scrap Material From Kerela.

The Seller had levied 4 % VAT (kerela state) on tax Invoice and 4%VAT(kerela state) was paid by Client.

The Buyer is from Gujarat.

But In the Tax Invocie with VAT and no CST was lieved.

Now We Client of Gujarat needs want to Refund of excess VAT (kerela state) by issuing CST Form

Is it possible to pay excess VAT amt 2% ( VAT 4% - CST 2 % C form )

Need your Suggestion what is possible to get the REFUND of VAt and getting CST paid.

Thanks

Replies (3)

V. Devananda Narasimham

Advocate

46 Points Posted on 02 February 2014

Mr.Mukesh,

Whenever you are making questions to clarify a legal matter, all the facts should be disposed off like whether the Kerala dealer is an assessee under CST Act and date of invoice issued by the Kerala dealer etc. According to the information provided by you, it is a local transaction with in the state of Kerala between your client and the Kerala dealer. Please provide details sought as above for further explanations in this regard.

Thanks.

mukesh

Article

30 Points Posted on 03 February 2014

XYZ Kerela State (Seller) Tax Invoice ABC - Buyer - Assessee in Gujarat State VAT Guajrat State Sale of Scrap RS 160,00,000 Vat 4% 6,40,000 Additional Vat 1% 1,60,000 ------------- Total Amt 168,00,000 ------------- Now query is can Assesse (Buyer) of can issue C form and get the VAT Refund of excess vat paid. Is it possible.

B.N.Dharmendra

Senior Manager Indirect Taxation

142 Points Posted on 03 February 2014

To issue a Form-C ie sale against Form-C at CST-2% is possible only when both the dealers are registered, and the commodity should be included in the buyer's CST Registration. Scraps are not entitled for Form-C, only the products used in the Manufacture like Rawmaterial, Packing material, consumables, or Capital goods or Re Sale or Mining etc.. The list is clearly given in the Registration Certificate itself. Kindly refer to it. And once you raise Invoice against full tax and you want to revoke against Form-C, its possible but you need to explain to AO or at the time of Assessment to set off the excess tax paid.