Invoices in Gujarat VAT

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This query is : Resolved

Omkar (Querist)

19 September 2008 Actually the Section 60 of Gujarat VAT Act requires Tax invoice to be raised for sale to VAT dealers. For Inter State sale we need to raise a separate series of invoice. For unregistered dealers we need to raise retail invoice. Unfortunately the section 60 of the Gujarat VAT prescribes heavy penalty for non compliance.
I personally feel these provisions do not any way plug the loop hole of any revenue loss to the department.

I want to know that what can be intenstion of the department behind imposing huge penalty ?

Taxguy

Taxguy (Expert)

20 September 2008 Now under VAT tax Invoice is as good as currency for obtaining tax input credit, therefore any misuse of that document will be penalised heavily. This could be one of the reasons.

CA. Harinder Kumar

CA. Harinder Kumar (Expert)

20 September 2008 yes Mr. Kotesh is right it is becuse to prevent the misuse of Vat Credit

Omkar

Omkar (Querist)

20 September 2008 suppose i issue a tax invoice also to unregistered dealer then anyway he can not take the VAT credit.Because dealer is unregistered and they need to claim credit.

Is it possible to endorse the Tax invoice to other ?If not,nobody can misuse the tax invoice.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)

11 October 2008 In few states tax invoices can be issued to unregistered delaers too. I agree that imposing so much restrictions & responsibilities on dealers is unwarranted. Afterall dealers are providing free services to the Govt by collecting taxes.
If a dealer makes a mistake, there are multiple provisions of penalty, but no such responsibility has been fixed on officers, who are paid for their job.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)

11 October 2008 If one assessing officer assess some body levying a huge amount of taxes and penalty (on being agreived for any personal?? reson). Dealer will have to hire Pleader, have to deposit a fixed percentage of demand and on appeal the assessment will be set aside by deleting the addition. The delaer will have to approach again for the fresh assessment, he will have to do all the required formalilities for refund of deposits amount, he will have to pay fees for appeal and for pleading. That too if his books and retuirns are O.K. Is there any provision that the A.O. will be answereable for his unwarranted additions?

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