Availing Input Tax Credit for Export of Exempted Goods under VAT

[SWAMINATHAN RAMANATHAN]

As per TNVAT Act, the pesticides are exempted. The pesticides are getting exported to other countries. Presently Packing Material are procurred with VAT for Export .   

Kindly clarify whether is it possible to claim ITC on Packing material procurred for Export.  If not what is the proceedure to claim the refund or what is the form to be submitted to packing material supplier for not impose VAT on their invoice.

 

 

[MANDAVILLI RAMAKRISHNA]

show the input when you are purchasing. 

When exported, show the exports sales in exempted column and show tax as zero.

accordingly the input can be claimed to be adjusted against other tax liability or can be claimed as refund. but you have submit proof of receipt of forex and documentary evidence for export.

 

[SWAMINATHAN RAMANATHAN]

Thank you sir.

AI Summary

Input tax credit for exported exempt goods can be adjusted or refunded upon submission of export and forex proof. Packing materials procured with VAT for export of pesticides (exempt under TNVAT) should be recorded as inputs; exports must be shown in the exempt column with tax zero. VAT paid on packing materials can be adjusted against other tax liabilities or claimed as a refund upon submission of export documentary evidence and proof of receipt of foreign exchange.