VAT credit

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santosh dubey (Querist)
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09 March 2009 Sir,

We a residential school organisation have not filed any return in the present year 2008-2009. But we have deposit VAT on sale of materials to the students. Also we have not taken any credit against vat payable (materials purchased like......uniforms, stationaries, edibles etc.)My query is ...

1. Wether we can adjust the full VAT recoverable from 01.04.2008 tilldate while paying the VAT for the month of March 2009 ?

2. Now that we have not filed any return, what is the procedure to file the return in the last qtr...if this being the first return filed ?

CA. MITHUN KHATRY

CA. MITHUN KHATRY (Expert)
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09 March 2009 i.e your return period is quarterly.

1. since you have not filed any return yet, so yes you may adjust full credit w.e.f 1.4.2008 till date.

2. first file return for 1st quarter. in this return you have inout credit but you have deposited tax, so you will have input credit carried forward.

3. now carry forward this to next qtr, file return for qtr2 & so in the 4th qtr you will have accumulated balance of input tax credit.

SUGGESSTIONS : MAKE PROVISION FOR PENALTY FOR LATE FILING OF RETURN IN RESPECTIVE RETURNS ITSELF AND CARRY FORWARD INPUT TAX IF ANY LEFT AFTER ADJUSTING PENALY. IN THIS CASE YOU MAY AVOID FINANCIAL HARDSHIP AT THE TIME OF LEVY OF ALL PENALTIES FOR LATE FILING OF RETURN FOR 3 QTRS.

santosh dubey

santosh dubey (Querist)
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09 March 2009 Sir,

What amount of provision should we take into account while filing the 4th qtr. return when we have yet not filed any return for the AY 2008-2009 as yet ?