03 March 2011
Sir my client is started a small business under Vat act last year. His purchases and sales are local only. He is adjusting the input credit on purchases at vat payable. At the ending of the year his turnover does not exceed 10 Lakhs. The Assessing officer disallow the adjusted input tax and he ask to pay the entire collected tax along with penalty of 150% and give the notice that you are not eligible to adjust the input tax credit because your total turnover is less than 10 Lakhs. What is the remidy to solve this issue. They are not covered under compound rate. The tax rate for the similar product is 4%
CAclubindia
