Under VAT it is essential to refund excess input tax
No trader has come forward to collect his duesDealers requested to claim refund before December 31
NELLORE: Gone are the days when traders used to woo Commercial Taxes Department officials for tax benefits. The very same officials are now going after traders requesting them to collect tax refunds, but nobody is listening to them.With the introduction of Value Added Tax (VAT) system in the State, refunding excess input tax has become essential. The excess of input tax over output tax results in a VAT refund, which is also called the credit returns.
Though initially it was decided to give refunds only in April 2007, the State Government advanced the date to October 2006. As per the new notification, all dealers, who have claimed a refund or Credit Carry Forward (CCF) as on September 30, must give a bank option form to process the claim.
Credits up to Rs. 50,000 will be processed without any audit. Credit above Rs. 50,000 but below Rs. 10 lakhs will be audited before a claim is authorised. No bank guarantee is required and dealers need to give only an indemnity bond besides producing their tax invoices, sale bills, statutory forms and books of accounts for audit. Against this backdrop, all dealers have been requested to come forward to claim the refund by December 31.Around 7,500 traders had registered their names under VAT in Nellore division alone.