Itc disllowed if the truck carries overload goods?

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saurav chhabra

BUSINESS

68 Points Posted on 16 July 2012

Vat officer is saying that we would disallow the input tax credit for the invoices in which trucks are overloaded i.e.,trucks carrying goods beyond there permissble limit ,such invoices input tax credit will be disallowed.

We would like to know how can this be possible? is it correct? if not how can we convince the officer as the same is not willing understand anything and says we would disllaow the credit.

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RAHUL MAHAJAN

85 Points Posted on 16 July 2012

"As per a Delhi Transport Notification, the department has not allowed the traffic police to issue challans for overloading. The transport department has retained authority to conduct the checks and traffic police can only compound offences or issue court challans under the state notification. Vehicles can be booked under dangerous driving under section 185 where a court challan is issued but overloading is not an offence,"

As it is not an offence therefore Receiver is entitled for input tax credit for all amount of VAT as per invoice.

If still VAT Officer is not convinced then you will pay the bribe for Input tax credit.