Punjab cabinet on Tuesday decided that 75% of the Value Added Tax (VAT) refunds would be issued on the basis of monthly returns and against indemnity bond.

This facility of indemnity bond would be extended to genuine manufacturers and traders up to a particular limit. Once this limit of Rs 1 crore was crossed, they would not get the new refunds.

Similarly, statutory forms would be submitted within a year from the closure of a financial year, for the year 2009-10, they would be allowed to submit these forms till March 2011 and thereafter these forms would not be entertained.