Sales without vat payment

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This query is : Resolved

praveer (Querist)

25 July 2013 I have faced a practical prolem, that is there is a company which manufacture paints, had not paid any vat to state government having turover of rs 28 lacks approx. How should we deals with this matter? Vat rate ia 4%

CA UMESH DULAL

CA UMESH DULAL (Expert)

25 July 2013 If the company is registered with VAT then it has to pay VAT on every sales (unless it is exempted sales)

The company can pay vat with interest and fill return(if return is already filled then reveised the return)

If you are taking about the accounting/audit of accounts of company you have to qualify the report

RENGARAJ R.K

RENGARAJ R.K (Expert)

25 July 2013 All the state vat rate is increased to 5%. But you say it is 4%. OK. The query relates to which STATE?

Secondly, have you collected the vat from the dealers?

If so, please remit the tax and file your return to avoid penalty and interest.

praveer

praveer (Querist)

26 July 2013 Sir the state is bihar. As far as collection of vat is concernd, the sales is made without issueing any sales invoice thus no vat collected.

RENGARAJ R.K

RENGARAJ R.K (Expert)

26 July 2013 Create sale bills in various parties name for 28 lacs and show the value as inclusive of VAT if the dealers purchased from you do not want a tax invoice. Pay the tax by calculating the tax liability, by applying formula.

4/104 * 28,00,000. file the return and pay the taxes

praveer

praveer (Querist)

26 July 2013 Ok thanks sir but there is a problem that vat registration has been suspended by authority and dispute is under settelment process, so vat return can not be filld. Can we make provision for the vat liability in this case?

RENGARAJ R.K

RENGARAJ R.K (Expert)

26 July 2013 Yes, make a provision for this liability and once dispute is settled, make the payment. Interest will accrue for this late payment.

praveer

praveer (Querist)

26 July 2013 Ok thank sir

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