yashsr (CA) (2285 Points)
25 May 2012A dealer is registered under Maharashtra VAT and CST. He purchases goods locally of say Rs.1 lac and pays 5% VAT i.e. 5000. Now he sells the same to a dealer in Gujarat for say again Rs.1 lac and collects CST @ % i.e. 2000.
Now, is he entitled to a refund of Rs.3000 which is the difference? If no, is he entitled to a credit for the same?
neeraj
(CA)
(930 Points)
Replied 25 May 2012
entitled for credit surely but for refund i m not sure abt maharashtra VAT ?
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 25 May 2012
Dear Yashsr
VAT is VALUE ADDED TAX . In the current case the dealer is selling at a loss .
So the Vat collected will always be less than the Vat paid .
However , the dealer will be entitled to be refund of Rs. 3,000 in MVAT Act , 2002
Sunil Kumar G
(AGM Taxation)
(373 Points)
Replied 26 May 2012
You will get refund under Maharashtra VAT Act for the differential amount ie Input - Output Tax. As per Notification issued by the Maharashtra CTD, up to 1 lac rupees Credit as on 31/03/2012 can be carried forward to next year, but if refund exceeds 1 lacs rupees, you should go refund, but you should file E501 and E 704.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
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