Giving relief to Industrialists, exporters and inter-state traders, the Punjab government has amended the Punjab value added tax (VAT), 2005. According to the notification, the concerned department will refund 75 per cent of the amount claimed within a stipulated period of 60 days, on the basis of their monthly or quarterly returns on furnishing of an indemnity bond. This was a long standing issue of the exporters and traders. Earlier, in absence of any notication, their refund used to remain stuck with the department for many months.
According to the notification, in case of an application for claim of refund given by a person on the basis of monthly or quarterly return, the designated officer may after adjusting any recovery, if due against such a person, provisionally allow 75 per cent of the amount of refund claimed but not exceeding Rs 1 crore on furnishing of an indemnity bond in the prescribed format.
It also mentions, if the requisite terms and conditions are not complied with by the taxable person, he shall be liable to pay due tax along with penalty at the rate of two per cent per month and interest in accordance with the date of filing of the return.
It is worth mentioning, in the Industrial Policy-2009, it was stated the Industrialists would be given VAT refund in 60 days instead of 90 days. It also has made a provision of payment of interest on refund beyond 60 days and action against concerned officials. Besides, the Policy also mention 75 per cent of VAT refund against indemnity bond to those filing monthly returns but it was notified when the policy was released.
Now with the notification in place, the Industrialists have heaved a sigh of relief. Speaking to Business Standard, Punjab Medium Industry Development Board Vice-Chairman Satish Kumar Dhanda said, “We are very happy over the notification, as the Industrialists will their get their dues in time. Earlier in the absence of Form C (inter-state sales), Form H (meant for exporters) and Form D (for government supplies), their refunds used to remain stuck with the department for many months. Since industrialists were not able to get their forms in time, their applications were as a result considered incomplete by the department. Now with the new amendment they can get their due in 60 days irrespective of these forms.”
Echoing similar sentiments, Punjab Chamber of Small Exporters Vice-President Ashwani Kohli said, “We are very delighted over the notification. Earlier, exporters’ working capital remained blocked with the department as a VAT refund, but with the new notification in place, we can get our precious capital in time. The blockage of capital and increased interest rate was a big blow to the Micro, small and medium enterprises sector. Now, we think there would be transparency and the exporters would be able to get their refund in time.”
