Procedure for Adjustment/Refund of Cash Security Paid by West Bengal VAT Dealers at the time of Registration under WB VAT Act, 2003.
The Government of West Bengal vide Trade Circular No. 13/2017 has clarified the queries regarding adjustment/refund of cash security paid by the dealers at the time of registration under the West Bengal Value Added Tax Act, 2003 and has laid down the guidelines to deal with the matters of such security-
- Security furnished for registration and the dealer is registered as per West Bengal Value Added Tax Act,2003-
The adjustment of the said security can be made against the amount of tax, interest and late fee payable according to return(s) filed under the VAT Act on or after the issue of Refund Adjustment Order and not under the West Bengal Goods and Service Tax Act. In case the dealer informs that there is no liability to pay tax, refund will have to be made by issuing Refund Payment Order (Cash) after ascertaining dealer’s outstanding liability under the VAT Act, if any.
- Security furnished for registration and the dealer not registered for any reason:
In case of rejection of application for registration under the WB VAT Act or for not getting registered for any other reason, the applicant is entitled to refund of security. Such applicant for registration shall apply manually before the Joint Commissioner of the respective Charge (that is, the Charge having jurisdiction over the place or principal place of business of the applicant), seeking refund of security giving certain details like registration application No., date, name of the applicant, trade name, full address, bank account No., phone No., e-mail, e-Challan GRN and date and BRN date, etc., along with a statement of purchases and sales of goods in the years 2016-17 and 2017-18 (up to 30.06.2017) and liability to pay tax under the VAT Act and the CST Act, if any, during the relevant period.
The applicant is also required to furnish copy of challan evidencing payment of security and in case of rejection of application for registration he/she shall also furnish copy of e-mail intimating rejection of such application. The applicant shall also furnish an undertaking to the effect that particulars given in the application are correct and complete.
The Joint Commissioner may allot applications received to other assessing officers and if the applicant has no liability to pay tax, the security amount shall be refunded after examining the claim of refund through Refund Payment Order (Cash). In case the applicant has some liability to pay tax any such refund will be made only after assessing the applicant as an un-registered dealer.
The process of refund of security is to be completed preferably within 3 months from the date of filing of application for refund if no assessment is required to be made and within 6 months in case assessment is made.