input tax credit under kvat

[Guest]

We are pharmaceutical distributors regirstered under Karnataka vat. we are purchasing goods from registered dealers, For example invoice will be made on 30 apr and the goods are dispatched on 1 may and we will be recieveing materials on 1st week of may, please suggest in which month we have to take account, in the month of April or may.

[YAGAY andSUN]

Dear Ajay,

You can book such purchases in the Month of May as you are receiving goods in the month of May itself. However, it is pertinent to mention here that in VAT laws goods should be moved within one hour from the issue of invoice, otherwise department may raise queries.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[rishi mohan]

We may book the purchase in the month of April only and input can be claimed in the same month.

AI Summary

Input tax credit timing: claim based on goods receipt or invoice date, with movement-timing risks affecting eligibility. Question concerns timing for claiming input tax credit where invoice predates receipt: one practitioner advises claiming in the month of receipt (May), linking eligibility to actual receipt and warning of departmental queries if invoice issuance and physical movement are not contemporaneous; an alternative view treats the invoice month (April) as the period for booking the purchase and claiming input.