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VAT Refund of Input credit accumulated

Hiren Bhatt (Practicing CA) (235 Points)

14 May 2008

Dear friends

A Manufacturing company (in Gujarat, Gujrat VAT Act applicable) purchases local raw material, pays VAT, and exports almost 90% of its production. For domestic sales, VAT is charged and collected. But, huge amount remains unadjusted as Input tax credit. So, is there any provision to get refund of accumulated ITC? Please throw some light.

you can also mail me at hirenbhattca @ rediffmail.com .

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12 Replies

biren thakkar (accounts manager) (231 Points)
Replied 14 May 2008

Respected Sir, Please note that you can take refund of input tax credit, that you had paid for the purchase of raw material. Under the vat system exporters are eligible for the Vat refund that they have paid. For the Gujarat Vat refund & other Forms &formalities you can go to thier official website.www.commercialtaxgujarat.gov.in. Please feel free to ask for further clarification

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(Guest)

i am a wholesaler in biscuits and sugar.

my query is that i had purchased biscuits in the month of march 08 and 9i paid vat in that month. but in the month of may i hv returned some goods and the dealer said that it is not possible to adjust vat of the march month in the month of may.

can you please tell me that is it possible to adjust vat of 1 quarter in another quarter?

Vijay K. Agrawal (Service) (608 Points)
Replied 22 May 2008

this is possible, ask him to issue credit note and show sales return. in the may month he will ajdust tax payable.

sales can be returned up to 6 month from the month of sale.

alternatively you issue him sales invoice charging vat he will take input credit in may 08 and give you money.

Regards

Vijay

(Guest)

hello...

I have a small conceptual query in relation to Gujarat VAT.

My question is that, whether we can claim the tax credit of purchase tax paid against the VAT Output payable..??

Actually, this is the case of a suagr industry.. Sugar industries purchase sugarcane and pay purchase tax on it and using that, they produce sugar.. But the fact is that; sugar is fully VAT free in Gujarat, so we cannot use the Claim of purchase tax that we pay to the unregistered dealer.. But along with sugar, we also produce Molasses. Molasses is the by-product of Sugar on which VAT is to be paid at the rate of 4%..

Now, my question is that: can we use the credit of purchase tax paid on sugar in the VAT payable on Molasses..??

On reading the Manual and the Act, i feel that we can claim the credit in some proportion if not allowed fully.. But, i am not clear with these wordings.. What should be the proportion for claiming such credit of purchase tax...

Kindly Reply.......... because the amount of purchase tax as well as that of the VAT is too high..

(Guest)

hi,

plz ask me, how i file my vat e return

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(Guest)

in case of transit sale ,a trader of gujarat purchases goods from GOA and sales it in transit to another dealer of gujarat, and raises his invoice for the amount of his original purchase price + 10 % profit plus CST.

my question is that who will isse the form E1 and WHo will issue Form C and for what value

kindly advice

(Guest)

we are manufacturers of steel rolling industry. we undertake jobwork of 40% of our volume by weight and 10% ratio by value. i hope you have understood our problem. now, how much credit on consumables be obtained i.e. 60% of VAT INPUT or 90% of vat input. the amount difference is substantial

(Guest)

Originally posted by :Guest
"	we are manufacturers of steel rolling industry. we undertake jobwork of 40% of our volume by weight and 10% ratio by value. i hope you have understood our problem. now, how much credit on consumables be obtained i.e. 60% of VAT INPUT or 90% of vat input. the amount difference is substantial	"

Vijay K. Agrawal (Service) (608 Points)
Replied 26 November 2008

Dear Hitesh,

in Every VAT Act. there is provision for refund of ITC. please file vat return monthly showing refundable amount of ITC.you calim monthly refund.

Vijay K. Agrawal (Service) (608 Points)
Replied 26 November 2008

Originally posted by :Guest
"	Dear Hitesh, in Every VAT Act. there is provision for refund of ITC. please file vat return monthly showing refundable amount of ITC.you calim monthly refund.	"