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Hemant

23 Points Posted on 18 April 2012

Dear Friends,

ABC pvt ltd. has many stores. in 2010-11 mumbai branch transfer stock to Goa for Exhibition of mumbai branch under form "F" hence no CST arise.

subsquent this stock was sold by Goa Branch but shown in Mumbai Branch's sales and VAT Deposited in mumbai only.

But Goa Govt again chareged VAT on same goods in current year.

so Goa Brach paid VAT and Debit to mumbai Brache now mumbai branch is showing this VAT in urrent year B/S and saying they Can't charged it in P&L

whether all treatments are correct or not?

Replies (1)

Sunil Kumar G

AGM Taxation

446 Points Posted on 19 April 2012

The VAT Payable on sale effected in the state of Goa has to Pay to Goa Government and not for Maharashtra Government. The VAT paid to Maharashtra Government is an excess Tax paid. Now you can't file revised return becuase 6 months over and I think you filed now E501 and E704. What you can do at the time of assessment you try to convince the Assessing officer (CTO) about the fact and ask for refund or Carry Forward. ( Maharashtra Less than 1 lac rupees you can opt for carry forward). But chances are remote. Now you can keep the excess paid Tax as an advance Tax (Advance VAT) and show in the books under Current Asset until assessment is over or you can charge it off P/L account.