Hi. Pls help me in this regard
As per VAT, Zero rating concept is refund of VAT paid against export of goods. So in the line of Zero rating the whole line will be zero rated.
But as per TNVAT Act, it is specified that refund is available if tax is paid or payable in the course of inputs of purchase or used in the course of manufacture.
My query is
Say A gives some material for job work purpose to B
A pays VAT on such job work charges and exports such goods.
So will A be eligible for refund of VAT paid on job work charges.
If to go by general concept of Zero rating, any VAT paid will be eligible of refund.
And if to go by literal interpretation of Act, Only purchases can be availed as refund.
So please help me in this regard whether i can claim refund on VAT paid on Job work charges.
Thanks in Advance
CAclubindia
