Due Date of Apply MVAT Security Deposit Refund

In Maharashtra new dealers had paid voluntary security deposit of Rs. 25000/- . VAT Deposit usually paid by Chque / DD / NEFT. Amount deposited by dealer to MVAT is refundable. Dealer need to apply for refund of MVAT Voluntery deposit is per rule 60A(2)(b).  earlier time period to apply for such VAT deposit was

1.After a period of 36 months from the end of month containing the date of effect of the reg. certificate but before the end of the period of 48 months.

However as per recent Trade Circular for MVAT deposit refund 26 T of 2018 dated 10/10/2018. Due Date for application to MVAT voluntary deposit refund shall be 31^st March 2019.

Following list of documents for MVAT Security Deposit Refund Application  

1. Vat certificate
2. Cancelled Cheque
3. Deposit slip or the bank statement page containing vat payments of 25000/-
4. Form A – registration filing form
5. Application letter
6. Authority letter Form 709
7. Other such documents officer may demand

Conditions for Applying MVAT Security Deposit Refund ?

Rule N0. 60 A of Maharashtra Value Added Tax 2002  lays down procedure. Dealer need to follow the conditions mentioned before apply MVAT Security Deposit Refund.

Following are conditions

1. Application shall be made as time period clause (a) and (b) of Sub Rule 60A.
2. File all returns till the date of date of application of refund or cancellation of registration
3. dealer need to pay taxes as per said MVAT Return
4. No out stand VAT demand pending

Can MVAT Security Deposit Refund be Adjusted against VAT Payable ?

With effect from 4^th May 2011 MVAT security deposit is not liable for adjustment against tax payable. However this Rs. 25000/- deposit is refundable as per 60A.

Can MVAT Security Deposit refundable in cash mode ?

No. MVAT Refund Deposit of Rs. 25000/- shall be refundable in bank account of dealer. Mode of refund can be Chque / NEFT. Case mode is not available. In given bank details funds will be credited.

Vat Deposit Refund Application Format/ Letter Format

Letter head

VAT No. . 27____________-

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

Respected Sir/Madam,

We M/s ABC Ltd having VAT registration number _______________ with effect from.  Our place of business is ___________. As a new dealer we paid Rs. 25000 as MVAT security deposit by DD No. _____ dated ______ . with respect to subject matter we here with making application for refund of MVAT security deposit. Our bank details as below

• Name of Bank
• Name of Account holder
• Account No.
• IFSC Code
• Type of account

We are enclosing necessary copies of documents.

Kindly proceed our MVAT Security Refund.

Thanking you,
Yours truly
For M/S ABC Ltd.