06 October 2009
I purchase goods say worth 10000/- on tax invoice in sept 2009. The entriers are recored in statutory vat purchase register As prescribed under various state vat laws in sept intself & input t avail input credit
However in books of accounts the entry is recorded in oct 2009 under the account head purchases in oct 2009.
will IBe denied input credit For late recording of entry in ledger account.
Please clarify the provision under delhi vat/UP vat
14 July 2024
Under the Delhi VAT and UP VAT laws (which were applicable before the implementation of GST), the availability of input tax credit (ITC) was subject to certain conditions, including timely recording of purchases in the books of accounts. Here’s how the situation would typically be addressed under those laws:
1. **Recording in Statutory VAT Purchase Register:** - As per VAT laws, purchases should be recorded in the statutory VAT purchase register at the time of receiving the tax invoice or within a specified period to avail input tax credit.
2. **Recording in Books of Accounts:** - In your case, purchases worth ₹10,000 were recorded in the statutory VAT purchase register in September 2009, but they were entered in the books of accounts in October 2009.
3. **Impact on Input Tax Credit:** - Delhi VAT and UP VAT laws generally required that for input tax credit to be claimed, purchases must be recorded in the books of accounts within a specified time frame. This time frame could vary, but typically, it was aligned with the filing period of VAT returns (monthly or quarterly).
4. **Provisions under VAT Laws:** - **Delhi VAT:** Under Delhi VAT, Rule 6(1) of the Delhi Value Added Tax Rules, 2005, specified that to avail input tax credit, tax invoices should be recorded in the books of accounts within 30 days from the date of the invoice or within such extended period as allowed by the Commissioner. - **UP VAT:** Similarly, under UP VAT, Rule 38(3) of the Uttar Pradesh Value Added Tax Rules, 2008, required that invoices should be recorded in the books of accounts within the prescribed time period to claim input tax credit.
5. **Impact of Late Recording:** - If purchases are not recorded within the specified time frame, input tax credit may be denied or delayed until the purchases are properly recorded in the books of accounts. - Late recording does not necessarily mean automatic denial of input tax credit, but it could lead to compliance issues and scrutiny during VAT assessments or audits.
6. **Course of Action:** - It’s important to ensure that purchases are promptly recorded in the books of accounts as per the requirements of VAT laws to avoid any potential denial of input tax credit. - If there is a delay in recording, it would be advisable to document reasons for the delay and seek advice from a tax professional to rectify the situation appropriately.
In summary, under Delhi VAT and UP VAT laws, timely recording of purchases in the books of accounts is crucial to avail input tax credit. While there may be provisions for extending the time frame in certain cases, adherence to the prescribed timelines generally ensures smooth availment of input tax credit without issues.
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