I am having client who is manufacturer of Gear and Gear Boxes for machines.

He purchases raw material locally at 5% and consumable and Tools at 14.5%

His Sale is interstate sale against C form. The issue is his input vat is more than output Cst tax.

His Sales tax refund increasing every month it has reached to some Lakhs.

Can anybody tell how to solve the problem 

and how can we claim refund from Sales Tax department

Posted 3 years, 7 months ago by Ca SKG

The excess taxes paid can be refunded by VAT department.

In your monthly VAT returned claim the vat refund. Meet the Commissioner with an application and return filed.

Once the officer authorised by Commissioner is setisfied with the records, he will pass the refund order in form VAT 255.

The officer has the power to reject the refund claims if he refund claim is found to be involve any mistake apparent on the record or appears to be incorrect or incomplete, based on any information available on the record, after giving the dealer the oppurtunity to show cause in writing against such rejection.

Posted 3 years, 7 months ago by CA Pulkit Sharma

For further details refer Sub-section 1 of Section 10 and rule thereto of Karnataka VAT ACt, 2003.

Posted 3 years, 7 months ago by CA Pulkit Sharma

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