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VAT refund on raw materials for Exportation of Finished Goods

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..... VAT refund on raw materials for Exportation of Finished Goods
Query (Issue) Started By: - Kishan Barai Dated:- 23-1-2017 Last Reply Date:- 23-1-2017 Customs - Exim - SEZ
Got 3 Replies
Customs
As we are buying peanuts (5 % Vat), sugar (5% Vat), cap and Jar (17.5% Excise); and exporting the finished product. Can we buy all (ingredients of peanut butter and packaging material) against .....

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..... H Form? Do we require to pay any taxes to our government here for ingredients and packing material? Kindly clarify on above. Thank you Reply By YAGAY AND SUN: The Reply: You cannot procure material against form H under CST Act as these are inputs and packaging material not the finished goods. On exportation of finished goods you may seek refund on inputs used in manufacturing of finished goods .....

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..... from GVAT Authorities. Reply By Kishan Barai: The Reply: Thank You for you reply. Mfg unit is established in Gujarat, what is the legal procedure to get refund of Tax Paid ? Any documents like H Form ?? Can we ask for higher rate of DBK via fixation of Brand Rate ?? Any CENVAT Credit facility can we have ?? Reply By YAGAY AND SUN: The Reply: Refer Section 15(7) of the GVAT Act: In case of .....

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..... sales made in the course of export outside the territory of India and the amount of carried forward tax credit admissible under items (iv) and (v) of clause (a) of sub-section (3) of section 11 remains unadjusted, such amount of tax credit shall be refunded within the period of three months next following the end of the month in which such purchases were made. Duty Drawback: You may seek AIR DBK .....

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..... or alternatively go for either Brand or Special Brand rate fixation. If CENVAT credit is availed then no DBK to the extent of availed CENVAT credit would be allowed.
Discussion Forum - Knowledge Sharing .....

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