VAT Refund, VAT + CST

[kiran pai]

Dear sir,

We are the manufacturer of textile and textile products, while submitting the Form 704 to the dept of sales Govt. of Maharashtra our personal has made a mistake that the party's name was not mentioned in the J2 annex. Now the said party has raised the debit note on us and demanding the payment. Actually we have to collect the sum from him for the supply we had made. This matter pertaining to the period of 2009-10. Party's justification is that the assessment is going on for the said period and the dept has disallowed the refund for him worth our supply. Now my query is can the dept., disallow the refund to the party on our mistake. We had reconciled his ledger and issued confirmation certificate. Please do reply with suitable law rule and section of Maharashtra VAT.

Thanks,

Kiran Pai

Posts / Replies

[Pradeep Khatri]

Dear Kiran,

In the Annexure J(2), you were supposed to provide the supplier wise vat purchases' information which inadvertently could not be provided for some or other reasons. Audit report under section 61 of the Maharashtra Value Added Tax Act, 2002, read with Rule 65 of the MVAT Rules is required to be filed /signed and certified by the Auditor on the basis of Balance Sheet. If the gross amount mentioned in the report and not mentioned in the annexures then a reconciliation can be submitted in this regard. Further, you are also providing the certificate after conducted the ledger reconciliation to the supplier. In our view it is a clerical mistake which can be corrected. Further this report pertains to year 2009-10 which is no time barred for any corrections. However, you can get it cross verified within the Department. We understand this matter can be sorted out on submission of documentary evidences.

Further, if by cross verification of suppliers statutory records and with your statutory records, if there is any deficiency, then, Department may disallow the refund. Further, either you or you supplier may file an appeal against the impugned order.

You may also seek help of your counsel who in-turn discuss and sort out this matter with your suppliers' assessing authorities.

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Pradeep Khatri]

Dear Kiran,

While replying to the answer to your query, we have committed a typo mistake in the 7th line of our reply.

" Further this report pertains to year 2009-10 which is no time barred for any corrections. "

Please read it as, "Further this report pertains to year 2009-10 which is now time barred for any corrections."

Sorry for inconvenience caused to you due to inadvertent typo mistake in our reply to your query.

Regards,

Pradeep Khatri

Founder - YAGAY and SUN

(Management and Indirect Tax Consultants)