TRAN credit verification

[V Rajalakshmi]

The company had availed TRAN credit on account of VAT paid material received after appointed date and declared the details in TRAN 1 return .The company has been served with notice saying that the part of the credit is in -eligible due the supplier has not remitted the tax. The company is in possession of original invoice and proof of payment made to the supplier . Any relief is possible or the tax needs to be compulsorily to be paid?

AI Summary

Company Challenges TRAN Credit Denial Due to Supplier's Tax Non-Remittance; Holds Invoice and Payment Proof, Citing Section 140(5) GST Law. A company availed TRAN credit for VAT paid on materials received after the appointed date, declared in the TRAN 1 return. They received a notice stating part of the credit is ineligible because the supplier did not remit the tax. The company holds the original invoice and proof of payment. Responses suggest that credit is allowed if the tax invoice is held, and the company should contest the case on its merits. Section 140(5) of the GST law is referenced, indicating conditions for claiming such credit, including documentation and timely recording in accounts.