Input VAt can be calimed as expense in next yr

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Rashi (Querist)
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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.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 October 2008 No.

CA. C V SURYAM

CA. C V SURYAM (Expert)
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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.

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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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

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