Bhavin Parekh (Partner) (30 Points)
09 March 2012Hello, I'm starting a new business wherein I shall be buying commercial vehicles from domestic manufacturers and exporting them after necessary modifications. The local manufacturers shall be charging me Excise + VAT + other taxes i.e ex-showroom prices as I shall be exporting them.
My question is: As my goods are being exported, can I get refund of VAT, Excise and other taxes paid locally?
Rakshit
(practising)
(338 Points)
Replied 10 March 2012
On the principle that goods should be exported not the taxes, you are entitled for refund of taxes/excise duty paid by you. If the process undertaken by you is amount to manufacture, you can take cenvat and pay excise duty from the cenvat balance, and claim the rebate of excise against the export of goods.
Raksh*t Verma 08800615751
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 March 2012
please discuss the issue with your juridicational technical superintendent, as the vehicles are not allowed for cenvat credit,
however you can follow procedure of ARE-1/2 for taking delivery of vehicles from plant direct without payment of duty.
Bhavin Parekh
(Partner)
(30 Points)
Replied 10 March 2012
Mr. Sharma, I'm not going to be manufacturing any vehicles, per se. All I'll be doing is buying the vehicle from the plant itself by paying excise, VAT i.e local taxes and fitting them with kits for export.
So I don't think fitting them with kits would be convered under Excise, would it?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 March 2012
Bhavin Parekh
(Partner)
(30 Points)
Replied 10 March 2012
DEPB scheme is no longer valid; it was discontinued on 30th September 2011. I shall inform my CA to follow ARE-1 to claim CENVAT refund. Thank you for all the information.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
CAclubindia
