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How to apply VAT Refund in Maharashtra

Today we discuss on how to apply vat refund in Maharashtra, in this blog we will discuss the form used for application of refund in Maharashtra,Time limit for refund application in Maharashtra,Procedure for the application of vat refund application in Maharashtra.

Is application for vat refund is necessary?

As per recent circular of MVAT department (Maharashtra state budget 2013-14) VAT refund up to Rs. 5,00,000/- can be carried forward to next year. Before Financial year 2013-14 this limit is only Rs. 1,00,000/-. Therefore the VAT credit of more than Rs. 5,00,000/- can’t be carried forward it can only be refunded.

Time limit for application of vat refund in Maharashtra

Assesse has to make a VAT refund application within 21 months from the end of financial year. For e.g. for the Financial year 2013-14 the vat refund application can be made up to 31st December, 2015 (21 months from the 31st March, 2014).

How to download VAT refund application form 501

Form 501 is to be used for VAT Refund

Click on the link to download the form 501 in excel.

Procedure for the application of vat refund application in Maharashtra

In this we will discuss how to fill the Form 501,After downloading the form 501, now open the form. It is in excel format. It contain total six sheets which are as following:

  • Errors sheet
  • Form 501 sheet
  • Annexure A
  • Annexure B
  • Annexure C
  • Annexure D

Now we will discuss all one by one.

Error sheet:

After filling the form 501 click on validate sheet option on upper side of each sheet, if it contains errors then such errors are shown in this sheet (error sheet).

Form 501 Sheet:

In this sheet you to fill the basic details like name of dealer, MVAT Tin, CST Tin no., Address of place of business, Details of Bank account in which refund is sought, refund amount, period for which refund is made, Name of authorized person with contact details, place & other details.

Annexure A:

In this annexure you to fill the details relating to all the vat purchase made during the refund period. For e.g. if you are claiming the vat refund for period 2014-15 then you have to enter the vat purchase details relating to period 2014-15. This sheet contains seven columns i.e. Sr. No.,  Tax invoice/ credit note/debit note no.,  Tax invoice/ credit note/debit note date, TIN of supplier, Net taxable amount, Input Vat amount, Gross total.This annexure is same as J-2 sheet in VAT audit report form 704.

Annexure B:

This annexure is automatically generated annexure. This is a type of application form. In this you to select Applicable refund scheme from four options i.e. Fast track refund scheme, Exporters refund scheme, Part refund scheme for annual refunds, General refund schemes.

Annexure C:

This annexure is same as Annexure I in Vat audit report form 704. In this annexure you to fill the details relating to all the certificates (C Form, F Form, H Form etc.) which are not received up to the date of vat refund application made (Form 501).
It Contain eleven columns i.e. Sr no., Name of the dealer who has not issued declaration or certificates, CST tin if any, Declaration or certificate type, Invoice no., Invoice date, Taxable amount, Tax amount, rate of tax applicable (local rate), Amount of tax on applying the local rate tax rate, Differential tax liability (Tax by local rate – tax by CST rate).   Only difference between this annexure & the annexure I in Vat audit report form 704 is that in that annexure you have to enter the details relating to all the certificates not received up to the date of Vat audit report Form 704 & in this annexure you have to enter the details relating to all the certificates not received up to the date of VAT refund application form 501 made.

Annexure D:

This annexure is same as Annexure G & H in Vat audit report form 704. In this annexure you to fill the details relating to all the certificates (C Form, F Form, H Form etc.) which are received up to the date of vat refund application made (Form 501). It Contain Nine columns i.e. Sr no., Name of the dealer who has issued declaration or certificates, CST tin, Declaration or certificate type, Declaration or certificate no., Invoice No., Invoice date, Taxable amount, Tax amount.Only difference between this annexure & the annexure G & H in Vat audit report form 704 is that in that annexure you have to enter the details relating to all the certificates received up to the date of Vat audit report Form 704 & in this annexure you have to enter the details relating to all the certificates received up to the date of VAT refund application form 501 made.

Failure to apply form 501 for  VAT Refund in Maharashtra

If an assessee fails to file the vat refund application form 501 within the prescribed time then he can file the form 305. Form 305 relates to Application for the issuance of direction to assessing authority under sub- section (9) of section 23 of the Maharashtra Value Added Tax Act, 2002. In this application you to mention the reasons for which you sought directions.

Click here to download Form 305

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One comment

  1. Dear Sir/Madam,
    As per Form 501 issued by VAT department some issues faced in Form 501 Annexure A.
    some Issues As Follows :-
    1) there is no sufficient line in Annexure A
    2) can i provide the details of purchase as per Invoice or As per TIN no.

    Please provide the Instruction sheet of Form 501

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