KVAT issues guidelines for Refund of wrong e-payments made by dealers

Department of Commercial Taxes

No.CCW/CR.03 / 2012-13

Office of the Commissioner of
Commercial Taxes in Karnataka
Vanijya Therige Karyalaya, Gandhinagara, Bangalore-9

Dated 26.3.2013

All the Joint Commissioners of Commercial Taxes (Admn), VAT divisions in the State.


Sub: Refund of wrong e-payments made by dealers-issue of guidelines-reg.

This office is receiving several requests from officers, dealers, representative of dealers, trade associations, to effect corrections in respect of e-payments made by the dealers by (1) entering incorrect TIN (2) choosing incorrect tax period (3) choosing incorrect tax type (KVAT/CST/KTEG), (4) incorrect entering tax/penalty/interest amount, (5) payment of tax by e-mode for same tax period, and for various other reasons.

It may be noted that once an e-payment is made successfully, corrections are not possible as the details would have reflected in bank records, RBI records and treasury records. Therefore officers are advised not to direct such cases to the head office for correction as to TIN, tax period, tax type , adjustment of amount, etc. Such amount needs to be refunded. They may advise the dealers to pay tax afresh by (1) entering correct TIN (2) choosing correct tax period (3) choosing correct tax type (KVAT/CST/KTEG), (4) entering correct tax /penalty/interest amount and thereafter submit return within the due dates and apply for refund of wrong payments.

As the only option for the affected dealer in such cases is to claim refund of such amount from the department, the LVO /VSO concerned shall take immediate action to verify the claim with reference to e-payment records and arrange to refund the said amount.

If the refund requires countersignature of the Joint Commissioners of Commercial Taxes (Admn) of the VAT division concerned, the JCCT shall also take immediate steps to grant refund of such amounts subject to other checks. While ensuring that the dealer has made proper e-payment of taxes that are legally due, the entire process of refund shall be concluded within 3 or 4 working days from the date of receipt of application for issue of refund, as the applicant would have suffered a financial crisis. It may be borne in mind that instructions already issued for refund of excess input tax as per form VAT 100 may not be applicable in these type of refunds.

All the Joint Commissioners of Commercial Taxes (Admn) of the VAT divisions in the state shall follow these guidelines and instruct the LVOs/ VSOs accordingly, so that refunds are issued without giving scope for complaints.

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