we have purchase a item in Tamilnadu having rate of 12.5% and sale the same in Tamilnadu to government @ 4%(terms of tender. Can we claim the refund of the balance input.
If yes what course of action we have to take. Whether claim annual or quarterly
12 November 2010
Yes, you can claim refund / excess amount by producing revise return to commercial tax office for the same month or better to claim at the time of assessment.
17 November 2010
But our consultant says we cannot claim refund. as the same item have been sold at lower rate(applicable rate is 12.5% but sold at 4%. He also say that if the same be granted than every one sale the product at lower rate and claim refund. Selling of lower rate is not acceptable as per law.
18 November 2010
Now i got it clearly. So, if you sale any thing to relating to the govt. like municipal, corporations, etc., those kind sales vat deductions what you said is correct. but, you need to ask tax deduction certificate (its like tds certificate) from that govt. related dept. and you can submit the same to commercial dept. to wavier the balance tax amount or adjustment.
FYI, lot of govt. dept. they deduct the sum of amount from sales bill and gives like tds certificate & tax deduction certificates, if you billed @ 12.5%. Otherwise you need to ask for lower tax deduction certificate from the dept. and adjust the same in sales tax.
Thanks for reply. Under schedule the tax rate is 12.5%. but its the term of govt of tamilnadu that tax on any item selling to government should not exceed 4%.
CAclubindia
