Vat rules in karnataka
This query is : Resolved
19 August 2013
dear sir,last month dc visited our shop and found that stock has been sold but bill not issued.so he imposed penalty rs 5000 and collected tax of goods sold but bill not issued.please advice me that how to show this tax in vat return and sale of goods.later i have issued all the bills on that date and accounted the same.
25 August 2013
please advise me any vat expert
03 August 2025
Regarding the VAT issue in Karnataka where the DC imposed penalty for sales without issuing bills:
1. **Tax on Sale without Bill:**
* The tax collected by the DC on the goods sold without bills is considered as VAT liability for you.
* You need to **include the value of these sales in your VAT return under the appropriate sales category** (taxable sales).
* The tax amount collected by DC should be shown as tax paid.
2. **Penalty:**
* The penalty amount (Rs. 5000) paid to the department **cannot be claimed as input tax credit**.
* It should be accounted separately as a penalty expense in your books.
3. **Bills Issued Later:**
* Since you issued the bills later and accounted for the sales, make sure these sales are correctly reflected in your sales register and VAT return.
* The tax liability should already be accounted for with DC's collection, so don’t pay tax again on these sales.
4. **In the VAT Return:**
* Include the sale value (even though bills were issued late) in the sales turnover.
* Show the tax paid (collected by DC) in the tax paid column.
* You can mention the penalty paid as a note but it does not go into VAT return as input credit.
**Summary:**
* Report the sales value as taxable turnover.
* Include tax paid under tax paid section.
* Penalty is a business expense, not a VAT input.
If you want, I can help you draft the entry for your books or how to fill this in your VAT return. Would that help?
1. **Tax on Sale without Bill:**
* The tax collected by the DC on the goods sold without bills is considered as VAT liability for you.
* You need to **include the value of these sales in your VAT return under the appropriate sales category** (taxable sales).
* The tax amount collected by DC should be shown as tax paid.
2. **Penalty:**
* The penalty amount (Rs. 5000) paid to the department **cannot be claimed as input tax credit**.
* It should be accounted separately as a penalty expense in your books.
3. **Bills Issued Later:**
* Since you issued the bills later and accounted for the sales, make sure these sales are correctly reflected in your sales register and VAT return.
* The tax liability should already be accounted for with DC's collection, so don’t pay tax again on these sales.
4. **In the VAT Return:**
* Include the sale value (even though bills were issued late) in the sales turnover.
* Show the tax paid (collected by DC) in the tax paid column.
* You can mention the penalty paid as a note but it does not go into VAT return as input credit.
**Summary:**
* Report the sales value as taxable turnover.
* Include tax paid under tax paid section.
* Penalty is a business expense, not a VAT input.
If you want, I can help you draft the entry for your books or how to fill this in your VAT return. Would that help?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- TDS related Query_Liquidated Damages
- Last year TDS Claim
- STCG FOR GOLD ETFs
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- AY 26-27 ITR-4 FILING U/S 44-ADA
- NON- SUBMISSION OF LLP FORM 3
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
