The VAT Refund Scheme provides small farmers Refund of VAT paid on their purchases of equipments as specified in a scheduled list.
To provide fiscal incentive to small farmers to encourage them adopting modern technologies to increase farm efficiency and productivity, hence boosting up agricultural production.
The Scheme provides farmers refund of the 15% Value Added Tax paid on their purchase of equipment, machines, spare parts, etc.
The relevant list of equipment can be viewed for small farmers at the 12th Schedule of the VAT Act. For small farmers the Section 65(A) and (1B) Parts I, II, III and IV is applicable.
The eligible farmer must apply for refund within 15 days from the end of the quarter during which equipment was purchased, provided that the amount refundable in a quarter is Rs 1,000 or more.
If amount refundable is less than Rs 1000, the person may carry forward this amount to next quarter.
§ The farmer must be registered with the Fund
Mode of Application:
· Copy if National ID Card
· Copy of Farmers Card
· Copy of Business Registration Card
· VAT Registration Number
· Original VAT invoice
· Payment receipt
· Photocopy of the Customs Declaration