The Commissioner of Sales Tax, Mumbai has issued a circular dated 30/09/2015 mandating that all refunds under the MVAT Rules, 2005 will be issued only under NEFT basis with effect from 1st October, 2015.
Rule 45 of MVAT Rules 2005 has been amended by insertion of Rule 45A which provides for remittance of refund through electronic system. In order to avail of this facility the eligible registered dealers under MVAT Act, 2002 will have to comply with some formalities such as
(a) The dealer needs to have his bank account in the bank which facilitates NEFT;
(b) information about the NEFT enabled bank account such as account number, branch details, IFSC code are captured in the registration record of the dealer.
(c ) dealers to submit an amendment application to the respective Branch/ office alongwith annexure A duly attested by bank manager with cancelled cheque,
(d) the annuexure a will remain on record until the dealer submits a fresh annexure A with revised bank details
With effect from 1st October, 2015, MVAT refunds will be paid through NEFT mode only.
Refund orders in respect of dealers whose registration certificate is cancelled, who is a non TIN holder and where orders are not passed on MAHAVIKAS shall be continue to dealt with on manual basis only.
The circular is available on mahavat site.