03 January 2010
had a query relating to input tax credit - Suppose the seller has collected excess VAT from the dealer due to some calculation mistake , then can the dealer get credit for the entire amount of VAT paid or will he get credit on VAT amount excluding the excess?
If my query is not clear enough then here's an illustration: Purchase Amt : :Rs.100 Vat @ 4% :Rs. 4 Vat actually collected by :Rs 4.3 supplier Billtotal :Rs. 104.3
So in this case, can we claim Rs. 4.3 as input credit or can we claim just Rs.4????
04 January 2010
In your case you can take credit of Rs.4 only because as per Section 60(2) of MVAT Act no RD can collect tax in excess of amount of tax payable and hence the supplier will have to forfeit that amount. Regards
CAclubindia
