Treatment of sales return in excess of sales in ap vat

Radhakrishna Rao H (G M ) (25 Points)

18 February 2013  

Can any body help in this peculiar situation?

In Andhra Pradesh VAT how to treat Sales Return when sales return in a month is in excess of Sales for that particular month? The AP VAT online portal does not allow you to enter negative sales figure in a particular month. ( In Karnataka VAT portal you can enter negative sales figures)

I can think of  some solutions:

1) Treat sales return as purchases and claim vat on sales return as input credit ( ofcourse this is wrong)

2) Enter the sales figure as NIL and claim the balance in next month ( This too is not correct)

3) Revise the VAT returns of earlier months for which the sales return pertain to.

Any expert opinion please?