Adjustments to VAT require dealers to amend returns when cancellations, returns, altered consideration or bad debts change tax liability. Section 8 requires dealers to adjust output tax in the tax return for the period when it becomes apparent if tax charged or accounted on a sale is incorrect due to sale cancellation, fundamental variation, altered consideration (excluding credit note post sale discounts), returns within six months, or bad debt write off. Excess tax payable is treated as arising in that period and not attributable to prior periods; excess tax already accounted for is deducted in that period. For goods partly used for taxable and other purposes, tax is calculated as the greater of A - (A x B / C) or A - B, with A, B and C defined by prior input credit reductions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Adjustments to VAT require dealers to amend returns when cancellations, returns, altered consideration or bad debts change tax liability.
Section 8 requires dealers to adjust output tax in the tax return for the period when it becomes apparent if tax charged or accounted on a sale is incorrect due to sale cancellation, fundamental variation, altered consideration (excluding credit note post sale discounts), returns within six months, or bad debt write off. Excess tax payable is treated as arising in that period and not attributable to prior periods; excess tax already accounted for is deducted in that period. For goods partly used for taxable and other purposes, tax is calculated as the greater of A - (A x B / C) or A - B, with A, B and C defined by prior input credit reductions.
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