Cancellation of vat no is wef from end of business hours o

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2014 Dear All,
Does the cancellation of VAT no effective from the end of business hour of the cancellation date ???

I have a Dealer who has purchased goods from dealer on 01/11/2007 and that dealers VAT No cancellation date is wef 01/11/2007. Do the purchasing dealer eligible for SET OFF?.

Any case law regarding the same that the date of effect of cancellation of VAT TIN no is effective from end of business hours??

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2014 pls reply as soon as possible

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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18 July 2024 In general, the cancellation of VAT registration (TIN) is effective from the end of the business hours on the cancellation date specified. This means that the registration is considered valid until the close of business on the cancellation date, after which it ceases to be valid.

Regarding the eligibility for set off in the scenario you described, typically, the purchasing dealer would not be eligible for set off on purchases made after the cancellation date of the selling dealer's VAT registration. The set off benefit under VAT laws usually requires that the selling dealer's registration is valid at the time of the sale for the purchasing dealer to claim input tax credit.

However, if the cancellation is effective from the end of business hours on the cancellation date (in this case, 01/11/2007), any purchases made from that dealer after the end of business hours on 01/11/2007 would not qualify for set off under normal circumstances.

**Case Law and Precedents:**
Specific case laws can vary based on jurisdiction and interpretation of VAT laws in different regions. It's essential to consult with a tax advisor or legal expert who is familiar with VAT laws and precedents in your specific location or jurisdiction. They can provide guidance based on relevant case laws that may impact the interpretation of the cancellation date and its effect on set off eligibility.

**Legal Interpretation:**
In legal terms, the effective date of cancellation from the end of business hours on the specified date ensures that transactions conducted during business hours on that day are still covered under the registration. This principle helps in determining the applicability of VAT on transactions and the eligibility for set off accordingly.

For precise advice tailored to your situation, especially regarding case laws and specific interpretations of VAT cancellation dates, consulting a tax lawyer or VAT consultant would be highly recommended. They can provide clarity based on local laws and precedents applicable to your circumstances.

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