one of our party has the registered under KVAT 2003 and he is liable for vat audit as per KVAT Rules...
the party has the input credit and he is not required to pay tax...but he is wrongly claimed input credit and which is identified during the audit period... as at the year end he has the balance input vat credit...
Now my question is whether he required pay tax along with interest or he can set up the payable amount from input credit available at the year end...
pls reply urgently..
S B HIREMATH AUDIT ASST MATHAPATI & CO CHARTERED ACCOUNTANT BELGAUM
21 December 2013
Mr Hiremath, The input credit available when some additional tax becomes due can be adjusted. When there is some net tax payable due to additional demand ,even after adjusting with excess input tax credit,then only interest and penalty will arise.But, such adjustments may affect the calculations of succeeding months,which may be verified.....mjk
CAclubindia
