Input tax credit

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CHANDRA KANTH (Querist)
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08 April 2013 Every assessee is required to file VAT monthly return stating his Input Tax i.e.( tax paid on purchases )and Output Tax.

Case 1 : For the month of April assesse "A" paid input tax say Rs.500000.However there are no sales in that month.Now in the Monthly return A should duly fill the form and can c/f credit of Rs.500000.

Now the question if A filed Nil return for the month of april and in the monthly return for May he added the above Rs.500000 to his input tax and claimed credit.

Is it allowed to take credit by filing nill return?

CA Krunal

CA Krunal (Expert)
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08 April 2013 - You can show carried forward input credit there is no restriction

- You can claim input credit in next month, however it is better to check the relevant governing law, whether any provision exist when input credit to be taken ? If no provision exist one - two month delay is reasonable so you can definitely can take the same