Vat returns for unregistered period by builders

Mahavat 902 views 3 replies

Priyanka

Chartered accountant

371 Points Joined September 2007

One of my client is engaged in Construction of residential houses. They have started our business in 2010 and We have obtained Registration under MVAT Act in September 2013 as per Circulars issued regarding vat liability imposition on builders.

However till date we have not file any VAT Return. Now my query is whether i should e-file vat return only from the period of Registration i.e.September 2013 onwards or i have to file returns even for UNREGISTERED period i.e. from March 2010 ? and so we have to all vat liability along with interest ?
Kindly Clarify me on the same.

Thanks & regards

Replies (3)

Sanjay Suresh

Student

98 Points Joined March 2012

As an unregistered dealer, you are not eligible for input tax credit. You do not have to file returns as an unregistered dealer. So, if you are filing delayed returns, file from the date you became a registered dealer.

Priyanka

Chartered accountant

371 Points Joined September 2007

Thanks for reply sanjay.

But are you sure about that ? because builders have been brought into ambit of VAT act from 2006.

and my client accordingly liable for vat from 2010. thats why i am confused. Circulars issued by sales tax department do not clarify this aspect

Sanjay Suresh

Student

98 Points Joined March 2012

Oh sorry and thanks for bringing that to notice.

It seems registration is to be done before 16/8/12 and payment of taxes, interest and late fees for the last six years(effectively since june 2006) and compounding fees of rs 5000 for all unregistered period and application for ADM relief be done before 31/8/12 itself. Since your client has registered only after the said date, i'm not completely sure as to the procedure. But he is liable to pay taxes from 2010 itself. I may not be 100% correct but i hope this helps