input tax credit under kvat

[ajay kumar]

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.

AI Summary

Pharmaceutical Distributor Debates Correct Month for Recording Purchases: April Invoice vs. May Receipt A pharmaceutical distributor registered under the Karnataka VAT inquires about the appropriate month to account for purchases when goods are invoiced in April but received in May. One consultant advises booking the purchase in May, aligning with the receipt of goods, while cautioning that VAT laws require goods to move within an hour of invoicing to avoid queries. Another consultant suggests booking the purchase in April and claiming the input tax credit in the same month.