MVAT Act - Refund through ECS

Dear All,

 

Please find attached file containing the Trade Circular dated 17^th July, 2012 regarding Refund through Electronic Clearing Services under MVAT Act, 2002.

 

Relevant Extracts are as follow:

 

“1. You are well aware that the State Government vide notification cited at Ref.-l inserted rule 45A so as to enable remittance of refund through Electronic Clearing Service (for short “ECS”). By virtue of this rule the State Government has taken powers to notify the dealers or classes of dealers to whom the remittance of refund shall be made through ECS. Accordingly, a notification cited at Ref.-2 was issued.

 

2. At present, the refund due to eligible dealers is issued manually. The Refund Payment Order (RPO) is delivered through Indian Post. This process consumes a lot of time till its realization. In order to obviate the need for issuance and handling of paper instruments and a further step towards e-governance as announced by the Hon’ble Finance Minister in his budget speech delivered on 26th March 2012, it is proposed to provide at the option of the dealer remittance of refund through ECS.

 

3. With effect from 1st October 2012, this facility will be optional to the dealers in Mumbai only i.e. for the refund applications processed by Joint Commissioner Refund and Refund Audit (1) and Joint Commissioner Refund and Refund Audit (2). However, in the future the department proposes to make ECS refund scheme mandatory. Therefore, all the dealers who do not have Bank account in an ECS enabled Bank are advised to open an account in an ECS enabled Bank.”