Set off related
This query is : Resolved
03 April 2012
Hello Sir,
my name is swati , i have one query my one clinet has vat registration w e f 3.11.2011 , & he purchase some goods 9.10.2011 so he will liable to take set off for the return filing for the period of 1.10.2011 to 31.12.2011
but it is volantary
i really confuse for that , thanks in advance
my name is swati , i have one query my one clinet has vat registration w e f 3.11.2011 , & he purchase some goods 9.10.2011 so he will liable to take set off for the return filing for the period of 1.10.2011 to 31.12.2011
but it is volantary
i really confuse for that , thanks in advance
03 April 2012
Yes, your client can take set off
04 April 2012
If he he registered from 03.11.2011 , how he can take setoff of URD Period. Though the return is filed for total Period.
04 April 2012
There is a provision that dealer has to get registered with in 30 days after he is liable to get registered. In this case they have applied for registration with in 30 days. Therefore dealer will have to pay tax on sales during this period and also he will be eligible to take set off of purchases during this period.
04 April 2012
I agree with Anand Sir, if registration is taken within 30 days.
04 April 2012
Hello,
i really thankful for answaring my question. but client was taken voluntary registration
thanks in advance
i really thankful for answaring my question. but client was taken voluntary registration
thanks in advance
25 July 2025
### **Set-off on Purchases Before VAT Registration (Voluntary Registration)**
In this case, your client has opted for **voluntary VAT registration** on **3rd November 2011** and made purchases on **9th October 2011** (before registration). The confusion is around whether your client can claim set-off on those purchases while filing the return for the period **1st October 2011 to 31st December 2011**.
#### **Answer:**
1. **Voluntary Registration & Set-off on Purchases:**
* **Yes, your client can claim set-off on purchases** made before the registration date under **certain conditions**. In cases of **voluntary registration**, the set-off can be claimed for purchases made during the **period between the date of becoming liable to register and the date of registration**, or within the **6 months before the registration** date.
* Since the **voluntary registration** was taken on **3rd November 2011**, your client can claim the set-off for purchases made **before the registration date (i.e., 9th October 2011)**, but **only if the goods purchased are intended for business use** and meet the conditions outlined in the state VAT Act.
2. **Conditions for Set-off:**
* The goods purchased should be **for business purposes** and must have **VAT invoices**.
* Set-off can only be claimed for purchases made **within 6 months prior to registration**. So, if the purchases were made on **9th October 2011**, they fall within the **6-month window** (from **May 2011 to November 2011**).
* The **set-off on stock held on the date of registration** can also be claimed. This is subject to the **conditions of the VAT Act** in the relevant state, which typically allows claiming the input tax credit (set-off) on goods purchased before registration, as long as the goods are still in possession and used for business.
3. **Return Filing:**
* Even though your client registered voluntarily and is filing returns for the period **1st October 2011 to 31st December 2011**, the set-off can be claimed in the return for the period in which the registration was effective (i.e., for the period from **3rd November 2011 to 31st December 2011**).
* **However**, the set-off for **purchases made before registration** (i.e., in October) must be properly supported by documents (invoices) and meet the conditions under the VAT Act.
4. **VAT Paid on Sales:**
* As a **voluntary registrant**, your client would also be required to charge VAT on **sales** from the date of registration (3rd November 2011) onward.
---
### **Summary:**
* Since your client voluntarily registered for VAT on **3rd November 2011**, they **can claim set-off on purchases made before registration** (on **9th October 2011**) provided that:
* The purchases were made for business purposes and meet VAT documentation requirements.
* The purchases were made **within the 6-month window** before registration.
* The set-off can be claimed in the return for the period **from 3rd November 2011 to 31st December 2011**.
---
If you need any further clarification or more detailed information about state-specific VAT rules, feel free to ask!
In this case, your client has opted for **voluntary VAT registration** on **3rd November 2011** and made purchases on **9th October 2011** (before registration). The confusion is around whether your client can claim set-off on those purchases while filing the return for the period **1st October 2011 to 31st December 2011**.
#### **Answer:**
1. **Voluntary Registration & Set-off on Purchases:**
* **Yes, your client can claim set-off on purchases** made before the registration date under **certain conditions**. In cases of **voluntary registration**, the set-off can be claimed for purchases made during the **period between the date of becoming liable to register and the date of registration**, or within the **6 months before the registration** date.
* Since the **voluntary registration** was taken on **3rd November 2011**, your client can claim the set-off for purchases made **before the registration date (i.e., 9th October 2011)**, but **only if the goods purchased are intended for business use** and meet the conditions outlined in the state VAT Act.
2. **Conditions for Set-off:**
* The goods purchased should be **for business purposes** and must have **VAT invoices**.
* Set-off can only be claimed for purchases made **within 6 months prior to registration**. So, if the purchases were made on **9th October 2011**, they fall within the **6-month window** (from **May 2011 to November 2011**).
* The **set-off on stock held on the date of registration** can also be claimed. This is subject to the **conditions of the VAT Act** in the relevant state, which typically allows claiming the input tax credit (set-off) on goods purchased before registration, as long as the goods are still in possession and used for business.
3. **Return Filing:**
* Even though your client registered voluntarily and is filing returns for the period **1st October 2011 to 31st December 2011**, the set-off can be claimed in the return for the period in which the registration was effective (i.e., for the period from **3rd November 2011 to 31st December 2011**).
* **However**, the set-off for **purchases made before registration** (i.e., in October) must be properly supported by documents (invoices) and meet the conditions under the VAT Act.
4. **VAT Paid on Sales:**
* As a **voluntary registrant**, your client would also be required to charge VAT on **sales** from the date of registration (3rd November 2011) onward.
---
### **Summary:**
* Since your client voluntarily registered for VAT on **3rd November 2011**, they **can claim set-off on purchases made before registration** (on **9th October 2011**) provided that:
* The purchases were made for business purposes and meet VAT documentation requirements.
* The purchases were made **within the 6-month window** before registration.
* The set-off can be claimed in the return for the period **from 3rd November 2011 to 31st December 2011**.
---
If you need any further clarification or more detailed information about state-specific VAT rules, feel free to ask!
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