Your views are solicited on the following query:-
A 100% EOU purchased goods from an unregistered dealer.
VAT on the above goods purchased is paid to the State Government by the purshaser.
Now, whether refund of the same can be claimed, on account of purchase of raw materials used in manufacturing process to produce export goods?
A senior profesional told me that such an amount paid can not be refunded and can only be set off with the amount of VAT liability in the subsequent months.
But if the VAT paid can only be set off then it will lead to blockage of money of the company.