New dealer tnvat - first returns doubts

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Abilash Praveen

Managing Director

23 Points Posted on 24 May 2012

Hello,

We recently registered out Pvt. Ltd. company under TN VAT. While registering I wrote date of commencement as business yet to start as adviced by the AC. I also gave a covering letter that we wanted to register with TNVAT to start business from this year (April 2012). After a few days we were orally told that the CST was dated 10th April 2012, but then only yesterday we came to know it is actually 9th May 2012.

My question is:

1) We have purchases made in April until May 8th. Can we avail input credit for all purchases from 10th April?
2) We have made sales until 8th April without charging tax from our customers. Are we liable to pay Output vat for these sales and also file a return for these sales?

What else can we do to keep our accounts and returns in good standing?

Thanks in advance.

Replies (2)

Sunil Kumar G

AGM Taxation

446 Points Posted on 26 May 2012

Input tax is the amount of tax paid on local purchases by a registered dealer to another registered dealer. Before registration under TNVAT Act, you are an Unregistered dealer. Therefore any purchase made before registration date is not eligible as input tax Credit. Similary sales made by un-registered delar ( before registration date) does not attract output tax also. So what i suggest that, if you want to take input tax credit, file an application to the commercial Tax officer to amend the regiatration certificate with effect from April date because you submitted your application in the month of April 2012.

your similar query is answered by Commercial Tax department of Gujarat in their FAQ. please visit : https://www.commercialtax.gujarat.gov.in/vatwebsite/vat/VatFAQMain.jsp?viewPageNo=4

Abilash Praveen

Managing Director

23 Points Posted on 26 May 2012

Thank you Mr. Sunil, in this case, can I still keep my purchases and sales records without claiming input tax and also without paying sales tax for the sales that happened prior to registration? Or will I be required to pay VAT on the total amount of sale prior to registration date?