Regarding Refund

[ABDUR RAZACK]

Sir,

The time limit to claim Export refund under Form W is 180 days.

I want to know, whether the limit begun from the first date of Export or calculated on month basis.

For example the export claim of Jan 2014 can be claimed under Vat Refund Act Sec 18 (3) within six month i.e July 2014. Before online of Form W, we are filing based on month. Now it shows error for each export which cross 180 days limit.

As normal practice we had filed after six month, now the assessing authority refuse to honor the export bills which cross 180 days in the same month of refund.

Please share what is the solution.

Thanks

Abdur Razack

[Ganeshan Kalyani]

Sir, the provison to section 18 (3) of TNVAT Act, provides that, "where the dealer has not adjusted the input tax credit or has not made a claim for refund within a period of one hundred and eighty days from the date of accrual of such input tax credit, such credit shall lapse to Government."

Sir, in my view the date of export is the date when the credit is accrued. Thanks.

[Ganeshan Kalyani]

Sir, alternatively you may opt for adjustment of such credit against the output VAT payable. Thanks.

[CSSANJAY MALHOTRA]

Endorse the views of Sh. Ganeshan ji that the adjustment option against VAT / CST payable is best available option in the present situation.

AI Summary

Input tax credit lapse: treat export date as accrual date and adjust unclaimed credit against output VAT. The 180 day limit in section 18(3) runs from the date the input tax credit accrues, which for export transactions is the date of export; credits not claimed or adjusted within that period lapse. Where refund claims have exceeded the 180 day accrual window, the available remedy is adjustment of the unclaimed credit against output VAT/CST payable.