TaxTMI 
TaxTMI 
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?
TRAN credit verification
04 Nov 2022 
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TRAN credit entitlement hinges on possession of tax invoices and supplier payment of tax, subject to prescribed procedural conditions.
Company sought TRAN credit for VAT-paid inputs; tax department challenged part of the credit alleging supplier non-remittance despite the recipient holding original invoices and proof of payment. Section 140(5) allows transitional credit where the supplier paid tax under the existing law within the prescribed time, the invoice was recorded in the recipient's books within the stipulated period (subject to possible Commissioner extension), and the required statement for taken credit was furnished. (AI Summary)
Company sought TRAN credit for VAT-paid inputs; tax department challenged part of the credit alleging supplier non-remittance despite the recipient holding original invoices and proof of payment. Section 140(5) allows transitional credit where the supplier paid tax under the existing law within the prescribed time, the invoice was recorded in the recipient's books within the stipulated period (subject to possible Commissioner extension), and the required statement for taken credit was furnished. (AI Summary)