I have been sent a gift from abroad by my brother. At New Delhi customs i have paid the required customs duty. Now the shipper who will sent the shipment from Delhi to Kolkata has asked for Form 50. When i visited the Sale Tax people for this i was asked to pay a VAT for 17% and only after payment of VAT i was given Form 50. Now the shipment was sent as a gift from my brother from the US. I am not a dealer and i am a govt. servant, why will i have to pay VAT for an item of personal use? How can i ask for a refund of the VAT paid?
Under the Sales Tax/VAT law, there is no tax if the transaction is not in the course of business or trade. Personal transaction of this nature are not liable to tax. Besides, there is no consideration involved in similar nature of transaction. The department should not have charge the VAT. You may pursue the matter for refund.