Refund of Tax

(1)

1. (a) A VAT dealer effecting sales falling under sub-sections

1. (1) or
2. (3) of section 5 of the Central Sales Tax Act, 1956 in any tax period shall be eligible for refund of tax, if the input tax credit exceeds the amount of tax payable subject to condition that the exports have been made outside the territory of India. The excess of tax shall be refunded within a period of three months on a claim made on a VAT return prescribed to the authority prescribed subject to the provisions of the Act and the rules made thereunder.
   • (b) In all other cases the VAT dealer shall make a claim for refund of the excess credit on the VAT return in the form prescribed where such dealer has declared an excess credit for 24 consecutive months or more or in the event of cancellation of registration. The excess of tax shall be refunded within three months of the date of receipt of the claim.
   • (c) The claim for refund unde this section shall be made on the VAT return in the form prescribed.
   • (d) A VAT dealer, who has paid tax in excess of the amount due for a tax period, may claim a credit in the next tax return.
3. (2) Where a VAT dealer claiming a refund is required by authority prescribed to provide accounts or records to substantiate the claim but fails to do so in a manner satisfactory to the authority prescribed within seven days of issue of notice, the time period specified in sub-section
4. (1) for making the refund shall not apply.
5. (3) Where a claim of a VAT dealer is not accepted either in full or in part, the authority prescribed, shall send a notice in writing, to the VAT dealer.
6. (4) A VAT dealer aggrieved by the decision under sub-section
7. (3) may file an appeal as prescribed in this Act.
8. (5) The tax paid under this Act on the purchases made by specialized agencies of the UNITED NATIONS ORGANISATION and Consulates or Embassies of any Country located in the State, or International Crop Research Institute for Semi Arid Tropics, Hyderabad shall be refunded in such manner as may be prescribed.