Credit of input tax before registration in dvat.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2015 Hi Experts.
I have open my company & purchased some material that include Sales Tax. At that time, I didn't claim input tax credit as my company was not registered in DVat. Now After 2 Months after incorporation, I got registered my company in Dvat.
My question is: Now can i avail input tax credit on the purchase before registrations in Dvat ?
Plz guide...

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2015 I think msg is clear to all of u... I m asking to take credit (after 2 months) on those purchase that was before registration in Dvat.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2024 In the context of Delhi Value Added Tax (DVAT), if your company was not registered for DVAT at the time of purchasing materials that included sales tax, and you have now registered your company after two months of incorporation, you have specific considerations regarding the eligibility to claim input tax credit (ITC) on purchases made before DVAT registration.

### Understanding Input Tax Credit (ITC):

1. **Pre-Registration Purchases**:
- Generally, under DVAT rules, input tax credit can only be claimed on purchases made after the date of DVAT registration. Purchases made before registration are not eligible for ITC unless specific conditions are met.

2. **Conditions for ITC on Pre-Registration Purchases**:
- In some jurisdictions, there might be provisions to allow ITC on purchases made before registration if certain conditions are met, such as:
- The purchases were made within a specified period before registration.
- The purchases were made from registered dealers.
- The dealer provides necessary documents and declarations.

3. **DVAT Regulations**:
- In Delhi, as per the DVAT Act and Rules, there is typically no provision to claim ITC on purchases made before registration, unless specifically provided otherwise.

### Practical Steps:

1. **Review of Purchases**:
- Review the invoices and documentation for purchases made before DVAT registration to determine if they meet any specific criteria for ITC eligibility.

2. **Consultation with Tax Advisor**:
- Given the complexities of tax regulations and specific provisions in DVAT, it is advisable to consult with a tax advisor or chartered accountant familiar with DVAT rules. They can provide guidance based on your specific situation and local tax laws.

3. **Compliance and Documentation**:
- Ensure that all necessary documents and invoices are maintained properly, even if ITC cannot be claimed on pre-registration purchases. This is important for audit and compliance purposes.

### Conclusion:

Based on standard DVAT regulations and unless there are specific provisions allowing ITC on pre-registration purchases, it is unlikely that you can avail input tax credit on purchases made before your company's DVAT registration. To confirm this and explore any possible exceptions, consulting with a tax professional is recommended to ensure compliance with DVAT rules and optimize your tax positions accordingly.

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