Dvat return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2012 If sales of Local Vat5% is of Rs.10,00,000 and credit note raised are of Rs.2,00,000 then what amount should be reported in return 10lakhs or 8 Lakhs???

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2012 Pls someone reply

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2024 In the context of VAT (Value Added Tax) returns, the amount to be reported typically depends on whether the credit note has been issued within the same tax period or not. Here’s how it generally works:

1. **Credit Note Issued in the Same Tax Period:**
- If the credit note of Rs. 2,00,000 has been issued within the same tax period as the sales of Rs. 10,00,000, then the net taxable value for reporting on the VAT return would be:
- Sales (Rs. 10,00,000) - Credit Note (Rs. 2,00,000) = Rs. 8,00,000
- Therefore, in this case, you would report Rs. 8,00,000 in your VAT return.

2. **Credit Note Issued in a Subsequent Tax Period:**
- If the credit note of Rs. 2,00,000 is issued in a subsequent tax period (after the tax period in which the original sales were recorded), then for the initial tax period:
- You would report the full sales amount of Rs. 10,00,000.
- In the subsequent tax period when the credit note is issued, you would adjust the output tax accordingly to reflect the correct taxable amount after deducting the credit note.

### Conclusion:
Based on the information provided:
- If the credit note of Rs. 2,00,000 is issued within the same tax period as the sales of Rs. 10,00,000, you should report Rs. 8,00,000 in your VAT return.
- Always ensure to follow the specific guidelines and regulations of your state or country regarding VAT reporting and adjustments to credit notes to ensure compliance with tax laws. If in doubt, it's advisable to consult with a tax advisor or contact the VAT authorities for clarification.

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