Vat credit of previous finalcial year

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2013 Hi,
We have taken VAT Credits on the F.Y.2010-11 on Invoice’s is related to the F.Y.2009-10

e.g. invoice date is 25.03.10. and Material & invoices physical received in month of April -10 ,Hence we have booked in n Apr-10 & claimed of set off in F.Y.2010-11

Is it valid please share legal supports –case law/Notification /sec reference etc…..
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Annu Agarwal

Annu Agarwal (Expert)
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28 November 2013 It is valid.
As per Section 19 of the Sale of Goods Act provides: “Where there is a contract for the sale of specific or ascertained goods, the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred.” When the transfer of property in goods takes place is a question of fact depending upon the terms of the contract and intentions of the parties.
Case Law:
In Kuppuswami Mudaliar & Sons vs. State of Madras (1974) 34 STC 6 (Mad.) it was held by the Madras High Court that the date of sale should be taken to be the date when the property in the goods passed from the assessee to the purchasing dealers.
Conclusion: From the above judgment it is clear that so long as the transfer of property in goods does not take place, the sale does not get completed. The crucial date when sale gets completed is the date when the title passes.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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28 November 2013 There is some problem in this matter. First,why so much of delay in taking the invoice into account and declaring it in the returns?.In all the state vat laws revising of returns is to be done within six months,for any reason.Only in a few states it can be done after that time also but,with the permission of the vat officer concerned.Generally,such amendment to the old returns and allowing of ITC is done not accepted.One other possible way is to get it adjusted in an official audit only.A very old invoice can not be taken into account in the current period and included in the returns.....mjk

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