Saroj Rout (CA FINAL) (120 Points)
21 December 2012Please clarify whether an input tax credit (VAT) relating to purchase made during the month of april 2012 which has not shown in april month's return.The assesse wants to take input VAT credit in the month of November 2012. Can he do so ?
The assessee is coming under Odisha VAT act.
Sakthivel
(Managing Partner - VS Global Solution & Assisstant - Auditing Accounting & Taxation - T.V.Vaikundan)
(91 Points)
Replied 21 December 2012
Input VAT should be claimed within a period of 3Months only. Hence Input VAT of April12 can't be claimed in this month, the input Credit has been lapsed & we can claim it has an expense in our accounts for IT Purpose
If you have already cliamed it & there is excess of input avaiable it can be carried forward but since you have not claimed within 3months it can't be claimed now
Saroj Rout
(CA FINAL)
(120 Points)
Replied 21 December 2012
As per you sir that much of input vat the assessee will lose in that particular finacial year. for which the payment has already made to the supplier by way of advance. the only thing is that the assessee has not passed the adjustment entry for that advance payment effecting purchase & input VAT a/c. now in the month of november if he is passing this entry he will not allowed to take credit.
Sakthivel
(Managing Partner - VS Global Solution & Assisstant - Auditing Accounting & Taxation - T.V.Vaikundan)
(91 Points)
Replied 21 December 2012
As Per VAT Act the main criteria for taking input Credit is it sould be within the State & the purchase date should be within 3months, if u don't claim input within 3months you can't claim it later & that amount of input tax is a nominal loss as per VAT.
Only option is you can claim it has expense in the accounts by accounting the total amount has purchase & it can claimed has expense in the IT
nayan
(article assistant)
(466 Points)
Replied 21 December 2012
Saroj Rout
(CA FINAL)
(120 Points)
Replied 21 December 2012
Sakthivel sir can you please send me the circular/ rule backing the three months input VAT credit concept.
it will be helpfull.
CAclubindia
