Bad debts with vat & cst

Dear all,

 

                Just i want to know that we have some customer whose are not able to pay/ don't want to pay our outstanding payment for 4 years that's why we would like to convert in bad debts but can we get claim from sales tax department for payment of VAT on those goods because we had not received VAT amount from customer and we had made payment of VAT to sales tax department so kindly suggest me can we get claim for VAT amount ?

Ram Chandra Khichar

 

Replies (2)

Dear Sir

Even though ,your customer is at default ,ultimately transaction with the customer is considered as sale itself .Hence you  wont be able get any credit for the same as far as my knowledge is concerned.please correct me if i am wrong.

In your case, the VAT amount cannot be recovered from the Sales Tax Department. But the Amount Receivable can be written off (ie. Bad Debts) and can be claimed as expense.

 

Regards,

Devendra Kulkarni

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