Andhrapradesh Commercial Tax CIRCULAR : Processing of refund claims
APVAT Act, 2005 – Processing of refund claims - certain clarification on provisional gross 28NCCF as on May 2014 - Reg.
Ref:
1. CCT’s Ref.No. AI(1)/12/2014, Dated 28.07.2015.
2. Representation received from Chairman, A.P. Spinning Mills Association, Guntur dated 2-9-2015.
In the reference 1st cited, certain instructions were given regarding adjustment of provisional gross 28 NCCF according to which the provisional 28 NCCF as on May 2014 may be availed for future tax periods until it gets exhausted and in the event the said credit is not availed by the end of March 2016 the same would be quantified and refunded after conducting refund audit .
In the reference 2nd cited, the Chairman, A.P. Spinning Mills Association represented to the Government to allow them to claim refund of 28 NCCF as on May 2014 without postponing the same to the end of March 2016 in view of the problems afflicting the cotton spinning mill industry. The representation given by the Chairman of the association has been examined in the light of the provisions contained in Section 38 of the APVAT Act, 2005 and Rules. In the said section it was spelt out that if the input tax credit exceeds the amount of tax payable subject to the condition that the exports have been made outside the territory of India, the excess tax shall be refunded with in a period of 90 days on a claim made on the VAT return. Thus refunds relating to exports shall have to be issued within a period of 90 days.
In this regard, it is noticed that some of the dealers including the spinning mills failed to claim refunds in the Box 23 of VAT 200 return of the month of May 2014, if at all they were eligible for claim of refund. Since the said dealers reported in the “Net credit carried forward” box 24(b) of VAT 200 return of May 2014, obviously the above situation arose. In cases, where Audit and Final Assessment completed by the assessing authorities and the dealers are found to have made export, Refunds may be issued after the assessment order is issued without waiting till the month of March, 2016.
Further, since the total NCCF of the undivided State of Andhra Pradesh and Telangana, the exact amount of Net Credit as on May 2014 also to be ascertained and mentioned categorically in the assessment order. Further, since the NCCF adjustment provision is made in VATIS, the officers concerned shall also ensure that the Net Credit is not adjusted more than once.
Hence all the assessing authorities in the state are requested to follow the above instructions scrupulously.
Sd/- J.Syamala Rao
Commissioner (CT).
Sd/- M.Pampapathi
Additional Commissioner (CT) Policy
Ref:
1. CCT’s Ref.No. AI(1)/12/2014, Dated 28.07.2015.
2. Representation received from Chairman, A.P. Spinning Mills Association, Guntur dated 2-9-2015.
In the reference 1st cited, certain instructions were given regarding adjustment of provisional gross 28 NCCF according to which the provisional 28 NCCF as on May 2014 may be availed for future tax periods until it gets exhausted and in the event the said credit is not availed by the end of March 2016 the same would be quantified and refunded after conducting refund audit .
In the reference 2nd cited, the Chairman, A.P. Spinning Mills Association represented to the Government to allow them to claim refund of 28 NCCF as on May 2014 without postponing the same to the end of March 2016 in view of the problems afflicting the cotton spinning mill industry. The representation given by the Chairman of the association has been examined in the light of the provisions contained in Section 38 of the APVAT Act, 2005 and Rules. In the said section it was spelt out that if the input tax credit exceeds the amount of tax payable subject to the condition that the exports have been made outside the territory of India, the excess tax shall be refunded with in a period of 90 days on a claim made on the VAT return. Thus refunds relating to exports shall have to be issued within a period of 90 days.
In this regard, it is noticed that some of the dealers including the spinning mills failed to claim refunds in the Box 23 of VAT 200 return of the month of May 2014, if at all they were eligible for claim of refund. Since the said dealers reported in the “Net credit carried forward” box 24(b) of VAT 200 return of May 2014, obviously the above situation arose. In cases, where Audit and Final Assessment completed by the assessing authorities and the dealers are found to have made export, Refunds may be issued after the assessment order is issued without waiting till the month of March, 2016.
Further, since the total NCCF of the undivided State of Andhra Pradesh and Telangana, the exact amount of Net Credit as on May 2014 also to be ascertained and mentioned categorically in the assessment order. Further, since the NCCF adjustment provision is made in VATIS, the officers concerned shall also ensure that the Net Credit is not adjusted more than once.
Hence all the assessing authorities in the state are requested to follow the above instructions scrupulously.
Sd/- J.Syamala Rao
Commissioner (CT).
Sd/- M.Pampapathi
Additional Commissioner (CT) Policy
CCT’s Ref.No. AI(1)/12/2014
Date:27.10.2015
Date:27.10.2015
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