Actually If VAT payable in excess of VAT Input Credit i.e., liability still remaining after setting off with available VAT Input Credit can be carried forward as Liability to next year or to be paid in cash in the current year itself..
Eg. if VAT paid on Input Purchases(i.e., your asset) available - Rs.150
if VAT payable on sale(i.e., your liability) amounts to - Rs.175
Now excess payable (excess liability) will come to Rs.25 which is to be paid in cash according to act.
My question on the above is if such Rs.25 to be paid in cash in the current year itself or can be carried forward to next year and can be set off subsequently when we get VAT Input credit in the next year.
CAclubindia
