Input tax credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2012 i made purchases of iron &steel which is taxable at 5% . Supplier charged vat @12.5% erroneosly & I paid total price charged including 12.5% vat.While selling I charged vat @5%. Am i eligible to claim Vat input on 12.5% vat charged by my supplier?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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21 October 2012 Mr Author,
In fact input tax claim can be made at the correct rate applicable only.If your return or accounts are verified by the VAT department the excess claim will be disallowed and interest and penalty will be charged on such excess input tax.The other way is to ask the dealer himself to rectify his invoice by issuing suitable credit notes.If any error has been already made in the returns that can also be set right by filing revised returns.There is also a way of applying to the Commissioner of Commercial Taxes to refund the excess tax collected by your supplier and paid to the department.....MJK