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Supplier not providing j1 form

Yogesh (Business) (98 Points)

16 April 2015

VAT Department is asking from me J1 form from my supplier. My supplier is not giving his J1 form to me and as a result MVAT department is not accepting my input vat to amount of VAT that I showed of my supplier. So penalty + interest is about three times original VAT amount.

My question is am I liable to provide J1 form of my supplier ? and can VAT department penalise me for not giving J1 form of my supplier? I have invoices of my purchases and have made cheque payment also.

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8 Replies

CA Raj Doshi (Practising CA) (8723 Points)
Replied 17 April 2015

1. Take confirmation of accounts in detailed format showing basic, tax , total 2. Take confirmation on his letterhead that for 20XX - 20XX , taxable sales = Rs. xxxxx and vat collected on sales = Rs. xxxx. 3. Attach columnar format showing only purchase transactions and bifurcating it in net vat total 4. Attach trade circular if the period under consideration is up to 31st March 2011 where dealers not liable for audit need not need to file vat annexures j1 j2. 5. If supplier is eligible to vat audit , tell him to file vat audit report and take time from officer . Also give letter from supplier that they are in process of filing vat audit report. 6. If the year is from April 2011 , then filing of annual annexures is a must. The supplier has to file it and give you copy of the same.. 7. All documents by supplier should contain his stamp and sign

CA Raj Doshi (Practising CA) (8723 Points)
Replied 18 April 2015

8. You can provide all invoices and take defence that set off shall be levied since you have all the invoices and the invoices bear the declaration by the supplier that he will.account the same in his vat return. and quote relevant section of mahavat ( sec 42 mostly ) regarding set off. 9. You can login in your account and download ITC report in dealer information system. You can check whether the same is matching or not. If it is not reported, then tell supplier to report your TIN by filing separate annexure. Take copy of acknowledgement of annecure filed and relevant j1 where your tin is reflected.

CA Raj Doshi (Practising CA) (8723 Points)
Replied 18 April 2015

10. If officer agrees and allows you set off then matter close. 11. If officer disagrees then tell supplier that you will recover the amount from him from the outstanding payments by issuing him debit notes. So better give me J1 copy and copy of acknowledgement of annexure file , OR / and file online if not filed.

CA Raj Doshi (Practising CA) (8723 Points)
Replied 19 April 2015

12. So make very very strong submission along with all documents and letter of authority etc. Submission must be systematic and satisfying.

CA Raj Doshi (Practising CA) (8723 Points)
Replied 20 April 2015

CHAPTER VIII SET-OFF, REFUNDS, ETC. 48. Set-off, refund, etc.:- (2) No set-off or refund as provided by any rules made under this Act shall be granted to any dealer in respect of any purchase made from a registered dealer after the appointed day, unless the claimant dealer produces a tax invoice, containing a certificate that the registration certificate of the selling dealer was in force on the date of sale by him and the due tax, if any, payable on the sale has been paid or shall be paid and unless such certificate is signed by the selling dealer or a person duly authorised by him.

Conclusion : You can quote this section and provide with the copy of all tax invoices dulky signed and also provide sample lorry receipts. You can write in letter that claimant dealer shall not be liable to pay the tax since supplier has paid the tax and declaration on invoice is mentioned. So default on part of other dealer of not filing J1 should be dealt by department and the defaulting dealer. Honest dealers and taxpayers should not be penalised for the right acts.

nmehta (businessman) (2 Points)
Replied 29 March 2018

Hello Mr. Raj Doshi,

DO you have a draft letter which we can send to similar defaulting dealers to bring the case to your attention & demand they rectify or reimburse the loss caused on account of disallowance by department ?!

Jahed Topiwala (Assistant Accountant) (58 Points)
Replied 03 April 2021

My Client has got a notice from VAT Department to file Ledger Confirmation from his Supplier.

The supplier is not willing to file it online but has given all the details on his letter head which was acceptable before, but VAT Department is not ready to accept this now saying either ask your supplier to do it online or pay the Tax.

Please advise what should be done in this matter? how to serve a legal notice to the supplier to file Ledger Confirmation as required by VAT Department.

Jahed Topiwala (Assistant Accountant) (58 Points)
Replied 03 April 2021

My Client has got a notice from VAT Department to file Ledger Confirmation from his Supplier.

Please advise what should be done in this matter? how to serve a legal notice to the supplier to file Ledger Confirmation as required by VAT Department.