Monday, June 24, 2013

90% Refund

What are the conditions to be satisfied for claming exemption for export outside city?
What things are to be fulfilled for claiming 90% refund?

Simple Answer:
First of all, let's understand what we are discussing. When the dealer bins in goods into the city limits i.e. into LBT area he has to pay tax on the entry know as LBT. Now if the dealer for any reason wants to ae these goods outside city and sell it over there and not in this cit of import then he will again have to pay LBT in the next city of importation. This cases the incidence of taxes to magnify and thus increasing burden on ultimate consumers. For this purpose there is an exemption of 90%.

The dealer exporting goods out of the city shall get 90% refund of the amount of LBT already paid at the time of Export.

The following conditions have to be fullfilled to claim this refund
  • Goods should be as it is exported
  • There should be no changes in the Quality or Quantity of goods
  • The export is within 6 months of date of import
  • No change in ownership of goods
  • Show such details in return filled
  • LBT is actually paid at the time of Import.