Exemption on VAT/CST for goods manufactured for Export, VAT + CST

[Samir Banerjee]

If a manufacture procure raw material, capital goods that are used to manufacture of goods for export. Is there any provision that (a) manufacturer of such goods could procure raw material & capital goods with upfront VAT & CST exemption (b) if manufacture needs to pay VAT & CST, can he claim refund of the same. Please let me know provision for both situation with procedure to avail the full exemption

Posts / Replies

[YAGAY AND SUN]

Dear Sameer,

Yes, there are provisions in State specific VAT Laws either to procure the inputs/material etc. without payment of VAT on producing prescribed Forms or avail the refund at the time of finalization of Audits/Assessments. But tax paid under the provisions of CST Act, 1956 would gonna be a cost to you though concession rate 2% against C form is available.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

 

[MARIAPPAN GOVINDARAJAN]

Yes the viewsof Yagay and Sun is correct.