This leaflet cannot be made use of for legal interpretation of

provision of law, as it is clarificatory in nature. For any further

information/ clarification, please visit our website at www.tnsalestax.com
or www.tnsalestax.gov.in .

Clarification may also be obtained from the Territorial Deputy

Commissioners (CT) and Help Desks established in the Office of the
GOVERNMENT OF TAMIL NADU
Territorial Assistant Commissioners (CT).

COMMERCIAL TAXES DEPARTMENT

The Office of the Commissioner of Commercial Taxes may also
be contacted in the following telephone numbers:-

Joint Commissioner (VAT) 044-28514251

Deputy Commissioner (VAT) 044-28514250 VALUE ADDED TAX

Pamphlet No.05

Commissioner of Commercial Taxes, REFUND TO EXPORTERS

Ezhilagam, Chepauk, Chennai – 600 005.

2006
 ZERO RATE SALE Procedure for refund

Zero Rate Sale Details of Input Tax paid and Zero rate sales effected may be
claimed, within 180 days from the date of zero rate transactions, by
Zero rate sale is a sale for which no tax is levied but the
filing Form ‘W’ to the Assessing authority concerned, with the documents
tax paid on local purchases is refunded to the dealer who
as called for in the Form. The Assessing Authority will issue a refund
effected that sale. The Value Added Tax Act has specified the
order in Form ‘P’, with refund voucher, within 90 days after verifying its
zero rated sales under Sec. 18 as:
correctness. ITC will get lapsed to Government, if it is not claimed within
a) Exports [5 (1) of CST Act, 1956]
180 days from the date of its accrual.
b) Sale in the course of export [5 (3) of CST Act, 1956]
Records to be filed for refund
(ie) Sales to Exporters
(a) Form W
c) Sale to International organizations
(b) Copies of Original Tax Invoices of local tax paid purchases, where
d) Sale to SEZ
tax is charged for separately.
(c) Bill of Lading / Railway receipt / Air-way bill / other transport
Input Tax Credit (ITC)
receipt, in support of despatch of goods.
ITC is the tax paid for local purchases on goods in FirstSchedule
(d) Copies of Sale invoices
which is allowed as credit under the TNVAT Act for a Zero Rate
(e) Copy of certificate for Import-
Seller and refunded after Zero Rate Sale. It is available, even if
Export Code issued by Directorate
exempted goods are manufactured and exported/effected zero
of Foreign Trade along with the
rate sales. ITC is not available for goods held in closing stock on
first claim made in every
31.12.2006 including Capital Goods for zero rate seller; but
financial year.
available for goods including Capital Goods purchased after
This is not necessary for second and
1.1.2007,the date of introduction of TNVAT Act.
subsequent claims in a year.
ITC on Capital Goods
ITC is allowed for Capital Goods purchased after the
introduction of VAT. 50% of the tax paid may be taken in the
first financial year of purchase and the rest in second and
third year. Input tax credit can be availed only after the
commencement of commercial production. Any ITC not
availed within three years will be lapsed to Government.
Restrictions on ITC
Goods taken for self-use, damaged on transit,
destroyed in fire, accident or lost while in storage, given as
gift, or free sample are not eligible for ITC. Automobiles
(two, three and four wheelers), spare parts and accessories
and air-conditioners are not eligible for ITC.
Accounts to be maintained
Accounts to be maintained by registered dealers are
given in Rule 6 of TNVAT Rules, in detail.

__________________________
For the sake of administrative expediency, all exporters
may file a single refund claim for the month.