MVAT-adjustment of liability against refun in next month

This query is : Resolved

Sachin Mohite (Querist)
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27 April 2010 Sir,
One of our client is revising his returns filed under Maharashtra Value Added Tax. In this case he is having liablity in the month of May and having refund in further months. If we consider it on yearly basis, party is having Refund for the year. However while filing revised return, return is not considering the previous months liablity which need to be adjusted against next months set off. Since return is in the form E-retrun and Not accepting liability for previous months he is unable to adjust the same.

Please Advice how to file the revise return.

CA Umesh Sharma

CA Umesh Sharma

(Expert)
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04 May 2010 Dear, u can mention it in Previous period Adjustment to Setoff, as there is no space provided by such adjustment as per section 50 of MVAT Act. Though it will be an incorrect disclouser, but intention is bonafide and ur tax liability will be correctly shown in return. Thereafter note can be given in MVAT Audit report. This practice is normally followed is such cases. so go ahead and file revised return accordingly.