No.VAT/Refund/ACST VAT 1/
Trade Circular 6 T of 2011
Sub: Adjustment of refund up to Rs. 1 lac for the F.Y. 2010 to the F.Y. 2011-12.
Ref: Trade Circular 15T of 2010 dated 15.04.2010
Section 50(2) of the Maharashtra Value Added Tax Act, 2002 provides for claiming the refund at the end of financial year and does not permit the dealer to carry forward the refund to the next financial year. Considering the difficulties faced by the trade, it was administratively decided to permit such adjustment for the year 2009-10 as per Trade Circular 1ST of 2010 dated 15.04.2010.
2) It has been represented before us by various organizations / associations to similarly allow the dealers to carry forward the refund for the year 2010-2011 to the year 2011-2012.
3) In view of the above, it is decided to allow the dealers who have refund claims up to Rs 1 Lac as per the returns for the financial year 2010-2011, to carry forward the same to the financial year 2011-12. In case any dealer has already filed the claim of refund for the period/ periods of 2010-11 then the same needs to be withdrawn first by making application for withdrawal of claim to his refund audit officer and then only adjust his refunds against liability for the financial year 2011-12.
4) This circular cannot be made use of for legal interpretation of provisions of law, as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.
5) You are requested to bring the contents of this circular to the notice of all the members of your association.
Commissioner of Sales Tax
Maharashtra State, Mumbai.