TRILOCHAN (SENIOR ACCOUNTANT) (698 Points)
19 January 2010HI, I WANT TO CONFIRM THAT, I HAVE PURCHASED TAXABLE GOODS DURING F.Y.2007-2008 FROM A REGISTERED DEALER IN DELHI OF RS.10 LAKH, ON WHICH HE CHARGED 4% VAT, DURING MARCH 2008 WHEN I FILED MY VAT RETURN I HAVE CLAINED RS. 40000/- AS INPUT TAX, BUT DURING F.Y. 2008-2009 DUE TO SOME DISPUTE WITH THE SUPPLIER, LIKE BAD QUALITY METERIAL SUPPLIED, I HAVE W/OFF HIS ACCOUNT OF RS. 500000/-, PLS CONFIRM ME , WHETHER I WILL REDUCE MY INPUT VAT CLAIMED EARLIER OR NOT
THANKS ]
TRILOCHAN
Davinder Sodhi
(Lawyer)
(66 Points)
Replied 20 January 2010
i feel , there must not be goods returned to the supplier and it must be consumed or further sold by u , also vat for sale of those goods must be deposited by u. then there will be no need of reversing Input tax credit..
GURVINDER SINGH
(ACCOUNTS MANAGER)
(231 Points)
Replied 21 January 2010
Mr.Sodhi is right,if u have sold out or consumed the goods,it means u have utilised the vat input related to those goods. So u don't have need to reverse the entry.
CAclubindia
