Refund of vat.
Haresh Jambucha
(Querist) 14 September 2015
This query is : Resolved
Hello there, My query is regarding VAT refund. One of my friend have contract work in Narmada Nigam (dept of Guj Govt.) He is carrying out work of Under Ground Pipe Line laying.When he raises bill for that work department deducts VAT @ 0.6% on the gross value of the bill.However Section 54 & 53 of Gujarat Value Added Tax provides limit that VAT TDS can be deducted only if gross amount of the bill exceeds Rs. 1 crore, but here its not exceeding so my question is whether they can deduct it or not.If they have deducted it wrongly how can he take refund of the same? My friend is not registered with the Guj Govt VAT department. Whether he will have to get registered under VAT dept to take refund of the VAT?
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R.K Nanda
(Expert) 14 September 2015
consult tax lawyer.
H.M.Patnaik
(Expert) 18 March 2016
Unless a person / entity is registered under the local VAT Act of the concerned state as a Works Contractor , it is not possible to seek refund of tax. However, in this case tax was deducted and deposited in the pre- regn. period. In such a case you have to apply for and obtain registration within the same quarter for being able to file a periodic return and claim refund of excess tax deducted by the principal.
