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TNVAT

Auditor K.Sankar (Practitioner) (72 Points)

27 May 2010

Dear Experts in TNVAT

I need clarification regarding claiming input credit on purchases, this business has been started on 14 th feb 2010, and purchased 4% taxable goods for Rs.15 Laks, and Sales 4% taxable goods for Rs.8 Lakhsupt to 31- March 2010. Till this date Vat returns are not submitted. Am I eligible to input credit, and what is procedure to claim input credit as per TNVAT Act. and now, If i file the vat returns for the period from feb 2010, is any penalty or proceedings will apply or not ? pls clarify with reference of TNVAT Act or case laws.

main question is: Am I eligible to input credit / claim input credit or carry forward input credit for the year 2010-11 ?

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2 Replies

chandra sekaran (chartered accountant) (44 Points)
Replied 31 May 2010

A Registered Dealer can claim tax credit on his local purchases before the end of the financial year or before 90 days from the date of purchase, whichever is LATER.

As far as the penalty is concerned, an assessee who fails to file his return shall be liable to fine which may extend to Rs. 500 u/s 71(1) (a) of the TNVAT Act.

In addition to penalty, Interest @ 1.25% per month or part thereof shall be charged on the tax payable for belated filing of returns.

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Murali (Others) (26 Points)
Replied 15 February 2015

1.I have a doubt in regard to this. I have a purchase bill in JAN, the tax credit I have earned will probably not be availed before MAr31. Does it mean I can not use it in April and following months. I also have a bill in February so does it mean I can avail it for 90 day even..ie., even after this fiscal is complete. 2. The penalty and Interest mentioned, do the also apply for business which did not have a registration earlier and later want to file taxes for the unregistered period. Thank in Advance for your Help !!