VAT Guide to Value Added Tax - sri lanka inland revenue ...

11.7 Set off of refunds against future tax
The computer will generate as above, a separate refund for each taxable period, and
therefore if a refund has to be set off against a future tax it can only be done after the
return form is processed and the overpayment statement (Form VAT 26) is generated by
the computer as the existing computer programmes are not geared to retain refunds for
future set off. Tax payers are therefore advised not to set off past refunds in their returns.
Any such claim maybe made separately on Form VAT 26 when it is received. It is
generally issued after 14 days of furnishing the returns.
11.8 Assessment of undue input tax claim
If a refund is issued in excess of the amount due such excess refund can be re-assessed
at any time irrespective of time bar.
11.9 Refunds arising from over payments etc.
• In the case of a refund arising on settlement or determination of an appeal the
due date for the refund will be 90 days from the date of settlement with the
Assessor or the date of determination by the C.G.I.R..
• In other cases the due date will be 90 days from the date of claim.
• Interest will be due on refunds made after the due date and any interest paid will
be an income in the hands of the recipient for the purpose of income tax.
11.10 Claims for refund of VAT charged, collected and remitted ot CGIR at the higher rate
when the correct rate should have been the lower rate.
In such situations refunds will be made only if the CGIR is satisfied that the claimant
not be unduly enriched by such a refund.
will
The evidence required to satisfy the CGIR is that there should be a demand from another
registered person who has obtained the supplies from the claimant at the higher rate
together with a request to CGIR to adjust his input tax claim made in respect of such
excess payment. If the claimant has charged and collected VAT at the higher rate
inadvertently from ordinary consumers who are not registered persons such excess
should be remitted to CGIR in the same way as VAT charged and collected illegally by a
non-registered supplier.
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