Vat on Packing material used for export

This query is : Resolved

Dasharath Appa Pujari (Querist)
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29 September 2007 Dear Sir,

Our comapny is in agri-export business.In the month of March-April 07 we had exported 15 containers of Fresh Grapes from Nashik to Europe Countries.The packing material used for the same is Corrugated boxes for which 4 % of VAT is applicable and we had paid the same.

Kindly let me know whether we can get the refund of same and if yes,from whom i.e. from State Govt. or Box Supplier?

Ravi Shankar

Ravi Shankar (Expert)
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30 September 2007 Normally, the tax paid on purchase of goods for sale, packing material etc., is eligible for claim of input tax credit when the goods so sold are taxable. When the goods are exported out of the country, even then input tax credit is claimable where one is entitled to the refund of the tax on the purchases as the sale is not taxable under the state VAT law.

However, in your case, fruits may be exempt from tax (most state laws exempt green vegetables and fruits from taxation) and hence ITC may not be allowed as the goods sold are exempt from levy of tax. Had the fruits been sold within the country, no ITC would have been allowed. The fact that you have exported the goods would not change this position.

Any comments?

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S.RAVICHANDRAN

S.RAVICHANDRAN (Expert)
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05 October 2007 The VAT paid on the corrugated boxes can be claimed refund by the exporter provided the following points are satisfied.

1. The corrugated boxes should have been purchased on or after the date of implementation of VAT ie ., 01.1.2007 in Tamilnadu. If the purchases of boxes have been made before the VAT implementation date, ie the boxes were consumed for export from the stock of boxes held on 31.12.2006 means, refund is not eligible.
2. The VAT return in Form I should be filed with the State Government Sales Tax department within 20 days from the end of the month of return.Copies of purchase bills should be enclosed alongwith the return.
3. Refund claim should be made within 180 days from the date of purchase of the VAT suffered goods.Form W is the refund form to be filled up alongwith the export proof viz., Bill of Lading, Shipping bills,Export invoice and packing lists.

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Dasharath Appa Pujari

Dasharath Appa Pujari (Querist)
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05 October 2007 Wether the said provisions are also applicable to Maharashtra?