FMC to issue VAT clarifications soon

The FMC, which had ordered the exchange to submit details of VAT amount due to various members and VAT amount to be collected from various members, is likely to issue clarification on VAT sometime this week, reports CNBC-TV18's Aastha Maheshwari.

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NSEL has submitted VAT amount details to FMC and is set to release VAT of Rs 186 crore against invoices raised by buyers. Members will be required to submit valid invoices in the form of  purchase statement, sales statement and net difference amount to collect the VAT amount.
VAT will be recovered from buyer members who will be required to submit VAT invoices to claim this credit. NSEL has an outstanding of around Rs 5572.3 crore, which includes Rs 186.33 crore, towards VAT, although this is not a part of the settlement payout plan.
NSEL has said that they will be releasing VAT of Rs 186 crore proportionate to the amount pertaining to VAT, which is being retained in the escrow account, and this amount will be released only after receiving VAT invoices, FMC nod.