Section 4(9) Vat Act

[HariPrasd Padakanti]

Dear Sir,

We are running Hotel & Bar Industry, from Apr2013 on wards, we are paying taxes regularly till the end of Vat regime, we are adjusting inputs on our purchases and paying the balance tax which are payable duly every month. Now department given notice that we should pay which ever the inputs we have adjusted from inception till vat regime end period and mentioning that we are not suppose to adjust input on our purchases, because the turnover should be above 1.5 crore, but we are turnovers above 1.5 crores every year including liqour sales.

Please help me in this regard.

Thanking you,

Yours faithfully,

Hari Prasad

[DR.MARIAPPAN GOVINDARAJAN]

Which State VAT Act?

[HariPrasd Padakanti]

Dear sir,

Thank you for your response, the bussiness is in Nizamabad of Telangana state.

Thanking you,

Yours faithfully,

Hari prasad

AI Summary

Input tax credit eligibility challenged as turnover threshold claimed, department seeks repayment of adjusted inputs for hotel and bar. Query under Section 4(9) VAT Act concerns whether a hotel and bar operator who adjusted inputs and filed monthly returns from April 2013 must repay those input credits after a departmental notice claiming the turnover threshold for such adjustments was not met; the operator asserts annual turnover exceeded the threshold and notes relevance of the Telangana VAT Act to eligibility and compliance.