28 December 2011
Where is the Sales Tax Department wrong in not demanding the sales tax. Sales tax needs to be paid.
The client has the following options: 1) Ask the party (who purchased car in 2009) to pay VAT and remit them to VAT authorities.
The VAT amount paid on purchases of Car cannot be claimed as credit now, as the VAT amount must have been capitalised at the time of purchases. (So in a way the benefit for that has already been taken, as client must have claimed the vat amt in the form of expense/depreciation)
2) Alternatively bear the amount of VAT and pay it to the State Authorities.
CAclubindia
