Refunds
A refund, in the context of taxes, is reimbursement for an overpayment of taxes by a government taxing authority. In a wider context, businesses and merchants issue refunds to customers who are dissatisfied with the goods or services they purchased.
Our Solution
Current GST return filing requires that every month, once GSTR-1 is filed to report Sales, one must file GSTR-3B to report the ITC and make necessary GST Payment. Also if a refund is required to be claimed the same can be done by filing relevant refund related forms. Usually when the GST paid is more than the GST liability a situation of claiming GST refund arises. Under GST the process of claiming a refund is standardized to avoid confusion. The process is online and time limits have also been set for the same.
The option to export goods without payment of tax can either be used under the cover of a Letter of Undertaking (LUT) or a bond. In such a case, any ITC accumulated on inputs/input services unutilised will be available for refund. Export of goods under GST means taking the goods out of India to a place outside India. The law and procedure for export of goods are primarily governed by the Customs Act. Export of services takes place under GST on the fulfilment of five conditions. The law and procedure of export of services are solely provided by the Indian GST law.
A VAT refund is the reimbursement of the VAT that you paid on goods purchased in Europe as a non-resident. If the product you bought included 20% of VAT, you can get the amount corresponding to this consumer tax paid back to you when you leave the territory.
One thing to keep in mind - get ready, some technicalities are coming your way - is that the VAT is calculated on the pretax base price of the item or service, NOT as a percentage of the final price. This means that you should NOT expect the VAT refund amount to be calculated on the final price: for an item taxed at a rate of 20%, for example, your VAT refund will generally be about 16.7% of the final price.
Duty drawback refunds 99% of duties, taxes and fees paid on imported products, if those products, comparable products, or products produced from the imported product are exported within five years. Thanks to eight-digit substitution, the imported and exported products do not have to be the exact same products. Charter pioneered the legislative change for eight-digit substitution drawback, first in 1993 for the energy industries and in 2016, for all imported and exported products. The modernization of drawback regulations has created new opportunities for companies to secure refunds. These new opportunities can be found by exploring not only imports and exports but also manufacturing, supply-chain movements, domestic sales, and purchases and in and out of network supply-chain sales. The increase of new drawback scenarios also increases the need for a highly compliant drawback program that uses state-of-the-art technology, in depth analytics and personnel.
Income Tax refund arises in case of a mismatch between the tax amount paid and the actual payable amount. If the amount paid is higher than the actual amount payable, a refund is initiated. The Form 30 is used for the same purpose. Under the income tax and other Direct Tax laws, tax refunds arise in those cases where the amount of tax paid by a person (or paid on his/her behalf) is greater than the amount on which he/she is properly chargeable. This is noted under Sections 237 to 245 of the Income Tax Act, 1961. In order to find the amount of income tax that you will get back as the refund, you must calculate the tax liability that is associated with you. If the amount that you have paid as taxes is more than the tax liability, then you will get the extra amount as a refund.