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Mvat tax lib & refund

vinayak (Accountant) (50 Points)

16 March 2013

Dear Sir / Madam,

Our Auditors shows Vat Liab as well as Refund in Form 704 (Vat Audit) for one financial year.

is it correct & if it is correct, then dept. will adjust the liab. against refund or not ?

Thanks & Regards

Vinayak.

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4 Replies

MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 16 March 2013

Yes, it is automatically done by the department. The balance/difference has to be paid or refunded/adjusted..........mjk

1 Like

vinayak (Accountant) (50 Points)
Replied 22 March 2013

Sub : MVAT

but dept. not adjusted the Tax Liab against Refund & sent noticed in Form 302 to pay the tax liability showned in form 704. We have paid the same & submitted Challans to the dept but, for next financial year the position was same like Tax Liab. as well as refund & we have not paid anything yet.

So, My Question is that,

we have to pay the said Liab. or not ?

Thanks & Regards,

Vinayak

MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 22 March 2013

They may intentionally demand for paying the arrears, but you should write back asking them to adjust the excess already available in your account.Even now it can be done. You can adjust the excess for any dues that arise in this or next financial year or ask for refund at anearly date(within 18 months).......mjk