Wrong entries of purchases

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2014 My new client is registered with the VAT department Maharashtra.

He had some actual interstate purchases of around 10-11 lakhs in F.Y. 2012-13 but his accountant had done some double entries and is overstated and the the return is filed like that only. Now on checking the past data I have understood that this has happened. The client has very less knowledge about VAT and accounting so didn't understand anything. Even his previous CA has filed the form 704 on the same basis (Wrong entries)even C Forms are issued by the department.

Can anyone please tell me any remedy on this???

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

11 June 2014 Nothing much to worry about,unless the assessing authorities try to be nasty.As you say,the interstate purchases are entered along with local purchases and again seperately as interstate purchases.If the dealer has claimed the CST paid on purchases also as input tax credit many problems such as : reversing the wrong claims,paying additional tax with interest and penalty arise.If this error is not done then it is easy to rectify the returns.Try to revise the affected returns either on-line or manually,by submitting copies of original and defective and corrected purchase accounts.In case any wrong ITC claim is made it is better to declare to the LVO and pay the dues voluntarily soon...mjk

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