Vat charged at 5% instead of 12.5%

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Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2012 client have charged VAT at 5% instead of charging at 12.5%. on realization he started charging at 12.5% how to deal with such a situation. and what about old tax invoice which are at 5% VAT.

sharma.ctc@gmail.com

sharma.ctc@gmail.com (Expert)
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13 July 2012 You didn't mentioned the period for the same.

If its not much old, then you can issue debit notes for the difference in amount in VAT and then ask the parties to make payments for the same and then take the input credit.

Further remember you will have to file the revise return for the same and pay the interest too.

I suggest to first consult your Sales Tax Authorities ..

"However I am sure that these Sales Tax Officers will not help you, but then also try"

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2012 client don't want to issue any debit not to his client, they want to bear the extra cost them self, is it possible to pay diff by client without bothering his clients

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Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2012 client don't want to issue any debit not to his client, they want to bear the extra cost them self, is it possible to pay diff by client without bothering his clients

Further client is charging at wrong rate for almost a year.