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CHANGES IN D-VAT ACT-2004

1- RATE OF D-VAT INCREASED
w.e.f. 14-1-2010 all items mentioned in schedule-III of D-VAT Act (i.e. items that were sold @ 4% earlier) will be sold @ 5%.


2- LIMITATION ON THE CLAIM OF INPUT TAX CREDIT
w.e.f. 1-1-2010, the following limitations has been imposed / the following points to be kept in mind while claiming Input tax credit.


(i)

The Input tax credit shall be allowed to the extent of the goods purchased has been actually sold.

(i.e. no tax credit shall be allowed / no refund and carry forward shall be allowed till the goods has been actually sold.)

(i.e. no tax credit shall be allowed on stock.)

(ii)

While claiming Input Tax Credit, the dealer has to ensure that the vat paid by him to another dealer while purchasing the goods has actually been deposited by the another dealer and has been disclosed in his return.


(i.e. now every dealer has to collect the information / copy of return and detail of return form the other dealers from whom you have purchased the goods.)

(iii) If you are selling the goods lesser than the price at which it was purchased, then in the period of sale, the Input tax credit shall be reduced proportionately.

(i.e. the tax credit claimed on a particular purchase shall not be more than the amount of tax payable on its sale.)

KINDLY BE CAREFULL NEXT TIME WHILE FILING YOUR D-VAT RETURN.

THE MOST IMPORTANT
Now w. e. f. 1-1-2010, to claim correct INPUT TAX CREDIT, Every dealer will have to maintain its BOOKS OF ACCOUNTS CORRECTLY and through QUALITY accountants.

Other wise your Input Tax Credit may Loose.

very important change that all of us needs to take care.
Accountants now really needs to be on their toes to get the proper VAT credit.

this 1 is imp. to all.......
thanx....

Since in the new provision to claim DVAT Credit, we require DVAT return and details from the selling dealer, it would be better to give him the request in writing and take acknowledgmn from him. This acknowledgement will help us at the time of VAT Assesnt , in case the dealer does not give us the Copy of Return and Details.

(01-19-2010 12:07 PM)CA Tarun Maheshwari Wrote: [ -> ]CHANGES IN D-VAT ACT-2004

1- RATE OF D-VAT INCREASED
w.e.f. 14-1-2010 all items mentioned in schedule-III of D-VAT Act (i.e. items that were sold @ 4% earlier) will be sold @ 5%.


2- LIMITATION ON THE CLAIM OF INPUT TAX CREDIT
w.e.f. 1-1-2010, the following limitations has been imposed / the following points to be kept in mind while claiming Input tax credit.


(i)

The Input tax credit shall be allowed to the extent of the goods purchased has been actually sold.

(i.e. no tax credit shall be allowed / no refund and carry forward shall be allowed till the goods has been actually sold.)

(i.e. no tax credit shall be allowed on stock.)

(ii)

While claiming Input Tax Credit, the dealer has to ensure that the vat paid by him to another dealer while purchasing the goods has actually been deposited by the another dealer and has been disclosed in his return.


(i.e. now every dealer has to collect the information / copy of return and detail of return form the other dealers from whom you have purchased the goods.)

(iii) If you are selling the goods lesser than the price at which it was purchased, then in the period of sale, the Input tax credit shall be reduced proportionately.

(i.e. the tax credit claimed on a particular purchase shall not be more than the amount of tax payable on its sale.)

KINDLY BE CAREFULL NEXT TIME WHILE FILING YOUR D-VAT RETURN.

THE MOST IMPORTANT
Now w. e. f. 1-1-2010, to claim correct INPUT TAX CREDIT, Every dealer will have to maintain its BOOKS OF ACCOUNTS CORRECTLY and through QUALITY accountants.

Other wise your Input Tax Credit may Loose.

yes, but another complication is, that if you want the return fopy from dealer, then it is necessary that he file his return before 28th. Only then you can take it on record at the time of filing your return. So it is going to be big hurdle in filing timely returns.

Hi.
I am a building contractor working for New Delhi Municipal Council in New Delhi.

I am registered under composition scheme with 3% tax payable.

NDMC deducts VAT on my payments received from it.
Recently, they deducted an excess VAT TDS on my bill.

While preparing the return for latest VAT return, my CA noticed this discrepancy.
Even after computing the VAT tax payable, an excess credit is there.

Can I carry forward the excess credit to next quarter?
If yes, how?

Do I need to file additional document(s) along with Form 17, challan & acknowledgment?
Or can I make change(s) in Form 17 itself for carrying forward the excess credit?

My CA is also quite puzzled regarding this.

I know I can claim a refund under relevant section of VAT Act, but that's a lengthy process & u all know what I'll have to "do" to claim that. I want to avoid that.

Kindly help.
Really urgent.

(01-27-2010 11:53 PM)g_goyal2000 Wrote: [ -> ]Hi.
I am a building contractor working for New Delhi Municipal Council in New Delhi.

I am registered under composition scheme with 3% tax payable.

NDMC deducts VAT on my payments received from it.
Recently, they deducted an excess VAT TDS on my bill.

While preparing the return for latest VAT return, my CA noticed this discrepancy.
Even after computing the VAT tax payable, an excess credit is there.

Can I carry forward the excess credit to next quarter?
If yes, how?

Do I need to file additional document(s) along with Form 17, challan & acknowledgment?
Or can I make change(s) in Form 17 itself for carrying forward the excess credit?

My CA is also quite puzzled regarding this.

I know I can claim a refund under relevant section of VAT Act, but that's a lengthy process & u all know what I'll have to "do" to claim that. I want to avoid that.

Kindly help.
Really urgent.

Dear Mr.Goyal,

Thanks for showing interest in our web site. Since our VAT expert is out of station, we could not replied. we will reply it positively by 06/02/2010

Regards,
CA Gopal Maheshwari