My partnership firm received notice from department for not claiming ITC (Input VAT).
Brief background: Initially we claimed VAT credit but as the vendor did showed sale and not deposited VAT amount with department, it came as mis-match with us. Thus we revised the Return and submitted without claiming credit. Subsequently, vendor deposited the VAT. Thus now department is asking us reason for not claiming ITC.
What should be done for proper compliance.
There is no problem. You can revise the return suitably once again. Also,you need not worry about the errors,omissions,or negligence done by bankers etc. Such things will be happening often with many traders and it gets rectified,may be with penalties or interest etc. One has to bother about bogus dealers who issue false invoices and do not comply with the rules. In such cases the buyers have to face lot of hardship....mjk
Yes,you can do it......mjk
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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