Input credit on bills with invalid/cancelled tin
This query is : Open
01 July 2012
Dear Sir/Mam,
My Client has got a Demand from Sales Tax to pay amounts claimed as Input Credit on basis of Purchase Invoices of Vendors with Invalid or cancelled tins. My client was ignorant of the fact that the TIN no was invalid/cancelled. He has made payments of all bills on which he claims credit.
Is there a legal provision which can save my client from paying this demand???
Please help.
C.A. Supriya Kalwar
My Client has got a Demand from Sales Tax to pay amounts claimed as Input Credit on basis of Purchase Invoices of Vendors with Invalid or cancelled tins. My client was ignorant of the fact that the TIN no was invalid/cancelled. He has made payments of all bills on which he claims credit.
Is there a legal provision which can save my client from paying this demand???
Please help.
C.A. Supriya Kalwar
02 July 2012
Recently there was a case law in which it was determined that Purchasing Dealer can not be held liable for cancellation of Suppling dealer
Message likes :
1 times
02 July 2012
Yes there is clear provision and judgment under Vat where Input credit cannot be denied to purchaser because he has purchased from Party who has invalid TIN or cancelled TIN at time of purchase.
If from whom you have purchased had a valid Number at the time of purchase but subsequently cancelled then it is not your fault.
But If when you purchased and at that time purchaser had no TIN Number or Bogus Number/Invalid Number or cancelled /Ineffective Number then department can recover the tax from you.
Yes there is clear provision and judgment under Vat where Input credit cannot be denied to purchaser because he has purchased from Party who has invalid TIN or cancelled TIN at time of purchase.
If from whom you have purchased had a valid Number at the time of purchase but subsequently cancelled then it is not your fault.
But If when you purchased and at that time purchaser had no TIN Number or Bogus Number/Invalid Number or cancelled /Ineffective Number then department can recover the tax from you.
Message likes :
1 times
03 July 2012
Sir,
Thanks for your speedy reply. Can you please provide me with the relevant provision and judgement details.
Thanks for your speedy reply. Can you please provide me with the relevant provision and judgement details.
03 July 2012
It will take some days to find the judgement.
In gujarat there were number of similar cases as mentioned in your quarry and Department imposed Int and Penalty also but
Court favoured registered dealer on the ground that he has done what he is expected to do as a purchaser at time of purchase.
If seller has not paid the tax then purchaser cannot be made liable .
It will take some days to find the judgement.
In gujarat there were number of similar cases as mentioned in your quarry and Department imposed Int and Penalty also but
Court favoured registered dealer on the ground that he has done what he is expected to do as a purchaser at time of purchase.
If seller has not paid the tax then purchaser cannot be made liable .
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
Trending Online Classes
CAclubindia
