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DVAT- Input tax credit

manish (Article Assitant) (358 Points)

23 January 2010

According to DVAT amendment we cannot refund or carried forward of tax?

Is there any exception?

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7 Replies

manish (Article Assitant) (358 Points)
Replied 30 January 2010

There is no one who can share their thought with us about input tax credit of dvat( new amendment)

Naresh Thapa (Assistant) (24 Points)
Replied 03 February 2010

We can carried forward the Tax for the next month.

manish (Article Assitant) (358 Points)
Replied 17 February 2010

I dont think that we can c/f the tax becaue the tax calcualation are based on the new amendment.

the new amendment says that we can take benefit of input tax credit only when we sale the item. and if we sale the item then our input tax credit amount are always lesser than the output tax. so how can we c/f the tax.

subramanya (Professional) (907 Points)
Replied 17 February 2010

Originally posted by : manish
	I dont think that we can c/f the tax becaue the tax calcualation are based on the new amendment. the new amendment says that we can take benefit of input tax credit only when we sale the item. and if we sale the item then our input tax credit amount are always lesser than the output tax. so how can we c/f the tax.

Hi Manish,

Currently Input tax credit can be taken only to the extent of goods sold in Haryana and Himachal Pradesh.

Can you please provide me the notification no. and date in Delhi VAT for the same.

With regards,

Subramanya

manish (Article Assitant) (358 Points)
Replied 17 February 2010

CHANGES IN D-VAT ACT-2004

1- RATE OF D-VAT INCREASED w.e.f. 14-1-2010 all items mentioned in schedule-III of D-VAT Act (i.e. items that were sold @ 4% earlier) will be sold @ 5%.

2- LIMITATION ON THE CLAIM OF INPUT TAX CREDIT w.e.f. 1-1-2010, the following limitations has been imposed / the following points to be kept in mind while claiming Input tax credit.

(i)The Input tax credit shall be allowed to the extent of the goods purchased has been actually sold. (i.e. no tax credit shall be allowed / no refund and carry forward shall be allowed till the goods has been actually sold.)(i.e. no tax credit shall be allowed on stock.)

(ii) While claiming Input Tax Credit, the dealer has to ensure that the vat paid by him to another dealer while purchasing the goods has actually been deposited by the another dealer and has been disclosed in his return.(i.e. now every dealer has to collect the information / copy of return and detail of return form the other dealers from whom you have purchased the goods.)

(iii) If you are selling the goods lesser than the price at which it was purchased, then in the period of sale, the Input tax credit shall be reduced proportionately.(i.e. the tax credit claimed on a particular purchase shall not be more than the amount of tax payable on its sale.)

KINDLY BE CAREFULL NEXT TIME WHILE FILING YOUR D-VAT RETURN. THE MOST IMPORTANT Now w. e. f. 1-1-2010, to claim correct INPUT TAX CREDIT, Every dealer will have to maintain its BOOKS OF ACCOUNTS CORRECTLY and through QUALITY accountants. Other wise your Input Tax Credit may Loose.

These are the new notifications.

1 Like

Shankar Kumar Thakur (Accountant) (22 Points)
Replied 20 October 2012

Sir

My business is that i gave Road construction machine on hire and charges 5% VAT and pay output tax to the governmnet.

But whenever my machinery goes out of order and for repairing this machine i have to purchase any spare parts from the Local Place (Delhi) on which i paid 5% DVAT

Thats why i want to know that when i file the DVAT Return then may I take Input credit or not?