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

AI Summary

Hotel Owner Challenges Tax Notice Over VAT Input Adjustments for Turnover Above 1.5 Crore in Telangana A hotel and bar business owner in Telangana sought advice regarding a notice from the tax department. The notice claimed that the business improperly adjusted input taxes on purchases since the start of the VAT regime, stating adjustments were only permissible for turnovers above 1.5 crore. The owner clarified that their annual turnover, including liquor sales, consistently exceeded this threshold. An initial response from another forum participant inquired about the applicable state VAT Act, to which the owner confirmed the business's location in Telangana.