Madhya Pradesh Value added Tax

[Ganeshan Kalyani]

Dear Expert,

I seek advise pertinent to treatment of VAT benefit on sales return within 6months in the State of Madhya Pradesh under MPVAT Act. As per section 2 (z) Turnover - it clarifies that VAT benefit on Sales return to be claimed if the return is within 6 months from the date of original sales. However, there is no provision prescribing that the said claim must be taken in same financial year in which the original sales occurred. It is general scenario that sales of Feb, Mar gets return in subsequent financial return. Kindly through some light in this matter.

regards,

ganeshan

[YAGAY andSUN]

Dear Ganeshan,

Such sales returns can be adjusted in the subsequent year's statutory VAT Returns. Further, if your State VAT permits then you may file revised return by showing such returns or while filing the annual returns, you may consider such returns in Annual Return along with submitting a reconciliation in this regard.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Ganeshan Kalyani]

Dear Sir,

Request you to assist with an Case law in VAT regime supporting the reply. I tried finding for it but could not fetch.

regards,

ganeshan

AI Summary

Can VAT benefits on sales returns be claimed in a different financial year? Explore Madhya Pradesh VAT Act guidelines. A query was raised regarding the treatment of VAT benefits on sales returns within six months under the Madhya Pradesh VAT Act. The issue was whether the VAT benefit must be claimed in the same financial year as the original sale. An expert responded that sales returns could be adjusted in the subsequent year's VAT returns, or considered in the annual return with proper reconciliation, if permitted by state VAT regulations. The inquirer sought further assistance with case law supporting this advice but was unable to find relevant legal precedents.