TaxTMI 
TaxTMI 
TaxTMI 
Only few days left to file the TRAN-2 form. The taxpayers need to know some essential points which are often being ignored regarding the form:
- The form is only for traders.
- It is only for traders who were unregistered in VAT.
- The benefits of credits received are to be passed on by way of reduced pricing. This doesn't just mean that the benefits are to be passed on, it also means that details of all the tax payers who have filed this form will be sent to the Anti- Profiteering Committee and the tax officials will surely pay you a visit if it is a substantial amount.
- The document of procurement is required to avail the credit. This document may or may not be a tax invoice under previous tax laws.
The form TRAN-2 should be filed very judiciously. The tax payer should determine whether its benefits outweigh its conditions. In case it is found by the authorities that incorrect claims were made then credits will be reversed along with interest. Penalty can also be levied but it will be at the discretion of the officer.
There are many other conditions for TRAN-2 but above points were the ones which I found were being overlooked by tax payers at large.