GOODS RETURNED

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2010 AS PER MAHARASHTRA VAT ACT GOODS RETURN WITH IN SIX MONTH THEN ONLY VAT IS TO BE REFUNDED BUT ONE PARTY SAYS ME INSTED OF SHOWING GOODS RETURN I AM SENDING SALES BILL AND YOU SHOW AS PURCHASES SO QUESTION OF TIME LIMIT DOES NOT ARIES IS THIS OK?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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16 November 2010 If the goods are defective and are returned, it will amount to goods returned. But if the goods are defective and purchaser refuses to pay the price of the same, and therefore the seller sues the purchaser, it will not amount to goods returned. VAT will be payable of the same. [Please see 142 STC 182].

Prescribed time limit of 6 months is not applicable if the sale itself is cancelled and the goods are not delivered. [Please see 134 STC 14]

THEREFOR
Rule 3 of Maharastra Value Added Tax Rules 2005, [referred as VAT Rules] prescribes the period allowed for goods returned, which is of 6 [six] months. It is calculated from the date of sale.

S. Karthi

S. Karthi (Expert)
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16 November 2010 Yes, you can do. but, Party must have TIN (holder) no. and he must pay tax for the same.

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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16 November 2010 YES,
Prescribed time limit of 6 months is not applicable if the sale itself is cancelled and the goods are not delivered. [Please see 134 STC 14]