Refund under MVAT (Wrongly Deposited)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2010 A dealer who has applied for voluntary registration under MVAT has inadverently deposited cash Rs 25000 & Rs 5000 in by the Bank. However as per a circular this amount has to be given only by way of DD/PO.
Under which provision the amount wrongly deposited in bank can be refunded by the department.

CA Umesh Sharma

CA Umesh Sharma (Expert)
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25 February 2010 Under Section 50, excess payment in cash shall be refunded or adjusted against tax liability. Hope Challan 210 has been used by the dealer in ur case for payment of Cash of Rs.25000.

Abstract of Section 50 is enclosed as under:

Section 50.Refund of excess payment:

(1) Subject to the other provisions of this Act and the rules made there under, the Commissioner shall, by order refund to a person the amount of tax, penalty, interest and fee except when the fee is paid by way of court fee stamp, if any, paid by such person in excess of the amount due from him. The refund may be either by deduction of such excess from the amount of tax, penalty, amount forfeited and interest due, if any, in respect of any other period or in any other case, by cash payment:

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2010 As per Sec 50; Commissioner is ready to refund; However, he has asked to file application in form 501. But for uploading for form 501; Type of return , period of return etc is to be mentioned without which it can't be uploaded. Pls give remedy for immediate refund.

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CA Umesh Sharma

CA Umesh Sharma (Expert)
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05 March 2010 Refund is available at the year end only. Hence the extra amount paid shall be adjusted towards tax liability and then whatever setoff on purchases is there may be claimed as refund at the end of F.Y. Please also refer rule 55 of MVAT act, were methodology is given for adjustment of sums paid, wct, setoff aganist tax liability is given. In ur case there is no immediate option.

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2010 In continuation to above :
Dealer has taken TIN No by giving another Rs 25000 + Rs 5000 by DD.
He has not done any business till March end.
Now to claim Refund in return , whether dealer can claim refund of Rs 55000 (Rs 25000 + Rs 5000 paid by cash & additional deposit for voluntary regn of Rs 25000 by DD )
(As set off now cannot be carried in next FY)

Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2010 On validating form 501 - error reported "Being the newly registered Dealer ,Not entitled to apply for refund before expiry of one year from end of Registration year"
As W E F DATE feeded in form 501 is 08/02/10 i.e date of challan of Rs 25k for voluntary regn, (while date of application for registration 16/02/10)

QUERY

1) As EFFECTIVE DATE OF REGN FOR VOLUNTARY REGN APPLICATION IS DATE OF APPLICATION OR DATE OF PAYMENT OF FEES WHICHEVER IS EARLIER. In above case return filing period is from 08/02/10 -- right or wrong.

2) How to remove error ?