Section 24: Repayment of tax

24. Repayment of tax (1) Where a registered person submits a return under section 22 and the excess amount includes input tax amounting to more than 100,000 rupees or such other amount as may be prescribed, on capital goods being building or structure, including extension and renovation, plant, machinery or equipment, of a capital nature, the registered person, may, in that return, make a claim to the Director-General for a repayment of the amount of input tax allowable in respect of those capital goods. (1A) Notwithstanding subsection (1), the Director- General may, on receipt of a claim under that subsection— (a) repay the whole or part of the excess amount; or (b) retain the excess amount to be carried forward onto the return for the following taxable period. (2) Subject to subsections (3) and (4), where, in respect of a taxable period, a return shows an excess amount, the registered person may, in that return, make a claim to the Director-General for a repayment, in addition to any amount repayable under subsection (1), of that part of the excess amount which corresponds to the proportion of the value of zero-rated supplies to the total value of taxable supplies in that taxable period. (3) For the purpose of subsection (2), the excess amount in a return shall not include any input tax for capital goods, whether repayable under subsection (1) or not. (4) (a) Where a return shows an excess amount and the registered person is mainly engaged in making zero-rated supplies, he may, in that return, make a claim to the Director-General for a repayment of the whole or part of the excess amount. (aa) Where a registered person proves to the satisfaction of the Director-General that any excess amount in his VAT return is unlikely to be set off against subsequent output tax, the Director-General may allow, in such circumstances as may be prescribed, the repayment of the whole or part of the excess amount. (b) On receipt of a claim under paragraphs (a) and (aa), the DirectorGeneral may— (i) repay the whole or part of the excess amount; or (ii) retain the excess amount to be carried forward onto the return for the following taxable period. (5) A claim for repayment under this section shall be made in such form and manner as the Director-General may approve, and shall be submitted together with the return. [Issue 10] V4 – 24 (2) Revised Laws of Mauritius (6) Where a claim for repayment is made under this section, the amount claimed shall not be carried forward to the return for the following taxable period and the Director-General may, on being satisfied that the registered person is entitled to the repayment, proceed to make the repayment. (7) Subject to subsection (7A) or (7B), a repayment under this section shall be made within 45 days of the date of receipt by the Director-General of the return and the claim referred to in subsection (5). (7A) Where a claim for repayment in respect of capital goods being fittings, equipment and furniture acquired by a VAT registered person for the purpose of renovation works of an amount of at least 10 million rupees in a shop, restaurant or other retail outlet, other than a supermarket or hypermarket, as confirmed by the Economic Development Board, reaches the DirectorGeneral on or before 31 December 2014, the repayment shall, subject to subsection (7B), be made within 7 days of the date of receipt by the Director-General of the return and the claim referred to in subsection (5). (7B) Where the Director-Genera T registered person for the purpose of renovation works of an amount of at least 10 million rupees in a shop, restaurant or other retail outlet, other than a supermarket or hypermarket, as confirmed by the Economic Development Board, reaches the DirectorGeneral on or before 31 December 2014, the repayment shall, subject to subsection (7B), be made within 7 days of the date of receipt by the Director-General of the return and the claim referred to in subsection (5). (7B) Where the Director-General requests a registered person to submit invoices, documents or information in respect of a claim for repayment under this section, the time limit for the repayment referred to in subsection (7) or (7A) shall run as from the date of submission of all invoices, documents and information requested. (8) Where the repayment is made after the period specified in subsection (7), (7A) or (7B), the repayment shall carry interest, free of income tax, at the prevailing Repo rate determined by the Bank of Mauritius. (9) Where, in respect of a claim for repayment under this section, it is found that an amount has been overclaimed, the registered person shall, subject to subsection (10), be liable to pay to the Director-General a penalty representing 20 per cent of the amount overclaimed provided that the penalty shall not exceed 200,000 rupees. (10) Subsection (9) shall not apply where the amount of penalty does not exceed 250 rupees. (11) Subject to subsection (12), the penalty under subsection (9) shall be payable to the Director-General within 28 days of the date of the notification for payment of the penalty. (12) Any penalty payable under subsection (9) shall be applied and set off against any amount of tax which is for the time being repayable to the registered person. [S. 24 amended by Act 18 of 1999; Act 25 of 2000; s. 22 (c) of Act 23 of 2001 w.e.f. 11 August 2001; s. 19 (g) of Act 18 of 2003 w.e.f. 21 July 2003; s. 33 (d) of Act 14 of 2005 w.e.f. 21 April 2005; s. 31 (g) of Act 15 of 2006 w.e.f. 7 August 2006; s. 31 (d) of Act 17 of 2007 w.e.f. 22 August 2007; s. 29 (h) of Act 26 of 2012 w.e.f. 22 December 2012; s. 30 (e) of Act 26 of 2013 w.e.f. 21 December 2013; s. 53 (e) of Act 9 of 2015 w.e.f. 14 May 2015; s. 42 (23) (a) of Act 11 of 2017 w.e.f. 15 January 2018.] V4 – 24 (3) [Issue 10] Value Added Tax Act