input tax

This query is : Resolved

Nagesh (Querist)
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15 August 2009 We have purchsed Machinery from vendor , Paying Vat . We claimed input tax credit & claimed refund from tax depatment, subsequently we learnt that Vendor did not paid the tax to department collected from Us.

now my querry is Can tax department claim tax from us since seller did not pay OR the seller is sole responsible to department Under Karnataka VAT act.

SARATHY RP

SARATHY RP (Expert)
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16 August 2009 Dear Mr Nagesh,

Dept. cannot disallow the input tax credit claimed by you since your supplier has not discharged the liability with the dept.

The dept. has their own ways to recover the tax from the seller. Only thing is to ensure that the invoice issued by your supplier is a TAX INVOICE and it contains all the particulars as laid out in KVAT Rules.

Thanks.
Sarathy