I am from Hyderabad, Andhra Pradesh. Recently vat rate have changed from 12.5% to 14.5% in the month of Jan 2010. I have a situation where i have made sales with vat @ 12.5%. Now i have sales return for that sales. My query is what rate of vat will be applicable for sales return i.e shall i take 12.5% or 14.5%?
If i take 12.5%, i do not have sales to reduce this sales return vat from it. If i do so there will be a negivite entry in vat return for the month of Feb 2010. Is this treatment allowed in sales tax?
What is the correct procedure for sales return under this circumstances?
12 February 2010
statutory provisions get changes time to time. sales will be reduced @ 12.50%, as you have paid the sale tax at such rate, how u can claim credit with excess rate? negetive entries are ofcourse allowed, as it is not necessary that a dealer have sale in each month. further i think it is not necessary that u have to reduce the sale from specific rate of tax made.u may have much commodities but if a person have limited commodity as per u he can't adjust his sale, unless he have the specific tax rate sale.
CAclubindia
