Input VAt can be calimed as expense in next yr
This query is : Resolved
22 October 2008
Company 'A' is engaged in exports.So it has availed the input VAT (GVAT) and calaimed the same as refund for F.Y. 2007-08. Now the Sales tax dept said no for granting the said refund.Can the company claim the vat of F.Y. 2007-08 as expenses in the current year 2008-09.
22 October 2008
No.
CA. C V SURYAM
(Expert)
23 October 2008
When the department said no because of many operational and procedural aspects, you can very well carryforward to next year. If not done so far, see that it is completed.
23 October 2008
In the year 2007-2008, Company 'A' must have shown in its books, the amount receivable as "VAT Refund Receivable" under Current Assets.
Such entry is in the nature of Sundry Debtors.
In my opinion, if refund is not receivable, the management can treat it as "Bad Debts" in the year in which such cancellation intimation is received i.e.,2008-2009 and hence the deduction in the nature of Bad Debts is allowable
Such entry is in the nature of Sundry Debtors.
In my opinion, if refund is not receivable, the management can treat it as "Bad Debts" in the year in which such cancellation intimation is received i.e.,2008-2009 and hence the deduction in the nature of Bad Debts is allowable
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