What if purchaser pays vat and seller does not
This query is : Resolved
31 October 2012
What happens to Purchaser if purchaser pays Vat on purchases but seller does not pays vat to the government?
Is there any liability of Purchaser? Please reply asap.
Is there any liability of Purchaser? Please reply asap.
01 November 2012
No set off allowable to purchaser, without any tax being received into the Government Treasury. For details Refer Judgement of Bombay High Court in case of M/s.Mahalaxmi Cotton Ginning Pressing and Oil Industries, Kolhapur Vs. The State of Maharashtra & Ors
WRIT PETITION NO.33 OF 2012, judgement Dt. 11-05-2012.
WRIT PETITION NO.33 OF 2012, judgement Dt. 11-05-2012.
02 November 2012
But sir, how purchaser came to know whether vat paid by him against the invoice is actually deposited by the seller or not?
05 November 2012
At present only at time assessment or mismatch statement is received from Dept.
05 November 2012
ok sir but i have another doubt
05 November 2012
Sir, in that case, is their any liability of purchaser if he has paid correct amount of VAT to the seller?
05 November 2012
Yes, Till tax amount on transaction is collected in treasury, purchaser will not be entitle for input VAT credit Sect. 48(5).
06 November 2012
Than what purchaser is supposed to do in such situation?
06 November 2012
Purchaser has to pay the difference amount with interest, wait & watch for refund as details given in judgement cited in earlier reply. You may also prefer appeal and obtain stay till favorable decision in matter.
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