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What's the procedure to get the vat refund

Rajeev Nair (Finance Professional) (510 Points)

04 May 2009

Dear All,

Kindly explain the proceedure to Get the accumulated VAT REFUND

from Sales Tax Dept.[Maharashtra]

We have around 5 Lacs Balance lying as refund from 2006-07 to 2008-09

Financial Yrs.

Thanks in advance.

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6 Replies

shailesh agarwal (professional accountant) (7642 Points)
Replied 04 May 2009

BE PRACTICAL

N.J.R (Practice) (346 Points)
Replied 05 May 2009

Originally posted by :shailesh agarwal
"	BE PRACTICAL	"

rightly said...

Rajeev Nair (Finance Professional) (510 Points)
Replied 05 May 2009

Dear Mr.Shailesh agarwal & Mr/Ms.NJR -

well, thanks for your reply..really appreciated...could you please elaborate the same in few understandable sentences.

Thanks

R B Banwat (tax consultant) (154 Points)
Replied 07 May 2009

1. First of all you have to file aplication in form 501 along with certain documents to the Return Branch/Refund Branch. If you have carry forwarded the refund on account of Input taxesfor the period 2006.07 to 2007.08 and total refund claimed in VAT return for march 2008 return is rs 5 lakh, then file only one application for 2007.08. There is no need to file two seprate applications. If refund is not c/f from 06.07 to 07.08, then two seprate applications will be required.

2. Along with the application you ahve to file in CD format as well as paper format of ALL INPUT taxes details as per the format given in form 501 e.g. Alphabatical and date wise list of suppliers, TIN Nos, bill nos , details of taxes paid etc

3. Here you can decide now either to go for Voluntarily refund scheme or refund after VAT Refund audit. In first case as per the norms setout you have to give bank gurantee % wise and then refund will be granted immediately. In second senirio Refund audit is carried out in detail, including visit to your place of business and checking of records etc. Suppliers details and taxes paid by them is cross checked with the help of MAHAVAT software used by department.. All forms against which concessional rate is charges i.e. C/F/H form are checked. If they are not received refund to the extent of that differential liability is held up. Do remember that refund in both the cases ( suppliers details not avaliable with mahavat and on accounf of Forms not received )is HELD UP and whenever you provide thses infor that refund is released. So no set off is disallowed in that account. Where suppliers deatils reagrding their returns not filed up or insuffficient information on mahavat, you can obtain the return copies from supplier and submiit with department.

4. After this all excerise is over file is send to Deputy Commr of sales tax for issue of refund cheque and for instructions if any. Remember that VAT Liablity is actually worked out in all such cases and you have to give all working along with final accounts duly reconciled.

all this procedure do take 2/3 months to be completed.\

please refer Trade Circular issued by Comm of Sales tax in this regard which is avaliable (35 T of 2008

if you still face any problem, take help of your consultant.

you can also wrtie to us at

rbbanwat @ live.com banwat @ banwat.com

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