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Last year Invoice

03 July 2021

Team,

What are the consequences if we make payment of Nov2019 Tax invoice now ?like how does it effect income tax, ITC, company act.

Shall I ask vendor to issue invoice with current date ?

FYI, No provision was made in last year book

Thanks,
Laxmi

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17 Replies

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 03 July 2021

You should have reversed itc on completion of six months from the date of invoice if payment was not made along with interest.
Thereafter when you are making payment you can reclaim the itc on original invoice.

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Laxmi Kudire (140 Points)
Replied 03 July 2021

We received invoice yesterday.Can I ask vendor to issue invoice with current FY date

CMA Poornima Madhava (CMA) (13112 Points)
Replied 03 July 2021

You will not be able to claim ITC in respect of Nov19 invoice even if accounted now. Further, under income tax, such expense would be treated as prior period expense. Hence it is better to get a current dated invoice.

Laxmi Kudire (140 Points)
Replied 03 July 2021

If I get current dated invoice can I get ITC poornima Ji ? we haven't made provision for this expense , so can we claim as income tax deduction in current year ?

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 03 July 2021

If you have received the invoice now then you won't be able to claim ITC on it. Ask your vendor to issue a fresh invoice at current date.

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 03 July 2021

Yes, you are right.

CMA Poornima Madhava (CMA) (13112 Points)
Replied 03 July 2021

Originally posted by : Laxmi Kudire
	If I get current dated invoice can I get ITC poornima Ji ? we haven't made provision for this expense , so can we claim as income tax deduction in current year ?

Yes, you are right.

Laxmi Kudire (140 Points)
Replied 03 July 2021

Yes this is what question, if vendor issue invoice with current date mentioning nature of expense with previous period Can we get ITC ? and income tax deduction?

CMA Poornima Madhava (CMA) (13112 Points)
Replied 03 July 2021

Yes, you can..........................

Laxmi Kudire (140 Points)
Replied 03 July 2021

Thanks so both ITC as well as prior period expense are allowed then

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veerendar singh (tax consultant) (3301 Points)
Replied 03 July 2021

If its shown that services were rendered in last year then it would violate provisions of gst invoice and time of supply.

you must show it as a current year expense for activities performed in current year.