i have purchased an item @ 12.5 % Vat and sold tha @ 12.5 vat (but the same item was of 4% Vat.) Now material sold to the party say that the material is of 4% Vat
What to do now because party from whom we purchased and We have filed the return.
Can we take refund if so how
pls guide me
create debit note, party will adjust itself ,i think its there responsibility.
If your sold to party is not end customer of that material then they may take Input credit of full VAT charged by you so it may not be a problem for them. if they are end customer then you must reimburse them the difference amount & same way you can also raise debit note to your vendor party for the difference amount.
I guess I am right.........
CAclubindia
