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Refund of Security Deposit in Mvat

Rule for the Grant of Refund of Security Deposits.-

           (1) A person or dealer who has obtained the voluntary registration may make an application to the registering authority for refund of the amount of Rs. 25,000/- of security deposit.

         (2)  The application for the refund may be made,-

               (a) If party is cancelled the certificate – where the registration certificate is cancelled within the period thirty-six months from the date of registration, then within six months from the date of service of the order of the cancellation of the registration certificate, and

              (b) If party is  not cancelled the certificate –in any other case, after a period of thirty-six months from the end of the month containing the date of effect of the registration certificate but before the end of the period of forty-eight months from the end of the month containing the said date.

Migration from VAT to the GST

As per trade circular 34T of 2017

Deemed cancellation of MVAT – If the person has not done the sales in Schedule  A and Schedule B  for the vat in 2016-17 than the dealer will be considered as Deemed cancelled as on 1st July 2017

Deemed cancelled dealer can apply for the Refund with in 6 month from the cancellation Practically date is 31st December 2017


Documents for the refund of voluntary deposit

1 Vat certificate

2 Cancelled Cheque

3 Deposit slip or the bank statement page containing vat paymentst July

4 Form A – registration filing form

5 Application letter


Sale Tax Officer

Ref: TIN No. 27____________-

M/S. ________
Sub: For Refund of security deposit

Respected Sir/Madam,

In connection with the above matter, we have to write to you as under:-
The above TIN no have been registered by us w.e.f. _______ and we have completed Three years, Now we are applying for the refund of Security Deposit Paid at time of registration.
The bank details for the same is as follows:-
We are enclosing copy of

Security Deposit Demand Draft,

Form A

Cancelled Cheque

Letter of authority Form 708/709
Please I request to process the refund as soon as possible. We will be glad to provide you further details if require anything.

Thanking you,
Yours truly
For M/S____________


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