35. Procedure for Refunds

(1) The claim for refund shall be made by a VAT dealer on Form VAT 200 by a TOT dealer on Form TOT 030.

(2) Any VAT dealer who claims any refund of VAT or a TOT dealer who claims refund of excess TOT shall not be eligible for any refund unless all the returns due have been filed and the taxes due have been paid.

(3) The authority prescribed shall have the powers to adjust any amount to be refunded against any taxes, penalty and interest outstanding under the Act against such VAT dealer or such TOT dealer.

(4) The authority prescribed shall not refund any VAT where tax, penalty, interest or any other amount is outstanding against such VAT dealer under the Andhra Pradesh General Sales Tax Act, 1957 and or under the Central Sales Tax Act, 1956.

(5) Subject to the conditions specified in sub-section (1) of Section 38, a VAT dealer shall be eligible to claim a refund for the tax period in which sales falling within the scope of clauses (b) of Section 8 have been made in excess of Rupees ten lakhs in such tax period and in other cases at the end of second year after commencement of the Act and thereafter in the return to be filed for month of March or in the event of cancellation of registration.

(6)(a) In the case of sales falling within the scope of sub section (1) of Section 5 of Central Sales Tax Act, 1956, the VAT dealer shall be in possession of the following documents

(i) Copy of contract or order from a foreign buyer

(ii) Omitted

(iii) Copy of the invoice issued to the foreign purchaser;

(iv) Transport documentation i.e. Bill of Lading, Airway Bill, or a like document.

(v) Evidence of payment or evidence of letter of credit from the foreign purchaser.

(vi) Copy of the document in proof of export duly certified by Customs Department.

(b) In the case of sales falling within the scope of sub-section (3) of Section 5 of Central Sales Tax Act, 1956, the VAT dealer shall be in possession of the following documents:

(i) Declaration in Form ‘H’

(ii) Purchase order from exporter

(iii) Evidence of export in the form of transport documentation i.e. bill or lading, air way bill or a like document.

Case Law

As per judgment of APSTAT – Annapurna Industries Vs. State of AP reported in APSTJ- 56[2013] – not to insist for purchase order issued by foreign buyer in the case of Deemed sales.

(c) In the case of sales falling within the scope of sub-section (6) of Section 8 of Central Sales Tax Act 1956, the Value Added Tax dealer shall be in possession of the following documents;

(i) Declaration in Form I

(ii) Authorization Certificate from Development Commissioner.

(7) A VAT dealer making sale of goods in the course of inter-state trade or commerce falling under Section 3 of the Central Sales Tax Act, 1956 may adjust any excess credit available under the Act against any tax payable under the Central Sales Tax Act, 1956 for the same tax period.

(8)(a) Where the VAT dealer makes a claim under Section 38, such refund shall be made within a period of ninety days of the date the return was due or the date the return is filed whichever is later.

(b) Where the VAT dealer fails to produce accounts or records required by the authority prescribed within seven days of date of issue of the notice, the time limit specified in clause (a) shall not apply.

(c) Where the VAT dealer has produced accounts or records within the prescribed time limit, interest shall be payable at the rate of one and quarter percent (1.25%) per month from the date after the expiry of the ninety days till the date of actual refund.

The interest in respect of part of month shall be computed proportionately and for this purpose, month shall mean a period of thirty days.

(9)(a) Where any refund is due to VAT dealer under Section 39, a notice in Form VAT 351 shall be issued by the authority prescribed proposing either adjustment of such refund against any tax, interest, penalty and any amount due under the Act outstanding against such dealer or notifying the refund within fifteen days of date of receipt of the order specified in Section 39 of the Act.

(b) The VAT dealer, on receipt of such Form, shall confirm the claim of refund within fifteen days of receipt by returning Form VAT 352.

(c) On After receipt of confirmation from the VAT dealer, the authority prescribed shall either adjust or refund the amount as the case may be.

(d) The stipulated time of ninety days under Section 39 shall include the period of process specified under clauses (a), (b) and (c).

(e) Where the refund is not made within ninety days, the interest shall be payable at the rate of one and quarter percent (1.25%) per month from the date after the expiry of the said ninety days till the date of actual refund.The interest in respect of part of month shall be computed proportionately and for this purpose, month shall mean a period of thirty days.

(10)(a) Where any turnover tax has been levied and collected under the Act in respect of sale inside the State of any declared goods specified in Section 14 of the Central Sales Tax Act, 1956 and such goods are subsequently sold by a VAT dealer in the course of inter-State trade or commerce, the turnover tax so levied and collected shall be refunded to such VAT dealer in manner and subject to the conditions specified in clauses (b) to (e) of this sub-rule.

Provided that the refund shall not be made unless the tax payable under the Central Sales Tax Act, 1956 is paid.

(b) The refund of tax referred to in clause (a) shall be made to the VAT dealer who effected the first sale in the course of the inter-State trade or commerce.

(c) Every application for such refund under this rule shall be filed by the VAT dealer claiming refund in Form VAT 360 before the authority prescribed having jurisdiction over the place of business of the VAT dealer within a period of ninety days from the date of payment of the tax due under the Central Sales Tax Act, 1956 in respect of declared goods specified under clause (a) above

Provided that the authority prescribed may condone for reasons to be recorded in writing, any delay in filing of such application

(d) The burden of proving that a VAT dealer is entitled to such refund shall be on the VAT dealer claiming such refund.

(e) The authority prescribed shall, after making such enquiry as he considers necessary, refund without interest the turnover tax levied and collected within ninety days from the date of receipt of application on Form VAT 360.

Provided that the authority prescribed shall first adjust the amount of such refund towards tax, penalty, interest or any amount due from the VAT dealer for any tax period and then refund the balance if any.

(11) The claim for refund under sub-section (3) of Section 15 of the Act shall be made on Form 510 along with the invoices in original. The refund in such cases shall be made within a period of 45 days from the date of submission of Form 510.

(12) The claim for refund under sub-section (5) of Section 38 of the Act shall be made on Form 510A, along with the copies of invoices, within 45 days from the end of the month during which the goods are purchased, to the Commissioner or to any other officer in Commissioner. The refund in such cases shall be made within a period of 45 days from the date of the claim.

(13) The Claim for refund under sub-section (9) of Section 38 of the Act shall be made in Form 510B, along with the proof of payment of tax in original, within 45 days form the end of the month during which the tax was paid, to the Commissioner or to any other officer, authorized by the Commissioner. The refund in such cases shall be made within a period of 90 days from the date of claim.