Input Tax Credit

[Sanjay Sharma]

Dear Experts,

Can we calim the Input Tax Credit of UPVAT on supplimentary Invoice in case of rate revision retrospectively, if there is any rule, notification pls. mention.

Regards. 

[YAGAY andSUN]

Please refer belowmentioned Rule:-

CHAPTER II

INCIDENCE AND LEVY OF TAX

Determination of turnover of sale

 For the purposes of determining turnover of sale, turnover of sales falling under sub-clauses (i), (ii) or (iii) of clause (a) of section 7, shall be deducted from gross turnover of sales. 

Determination of taxable turnover of sale

For the purposes of determining taxable turnover of sale, amounts specified below shall be deducted from the turnover of sale, determined in accordance with rule 7, if included in such turnover of sale :

(viii) amount of tax payable on sale of goods by the dealer where such amount has been realized from the purchaser separately on a tax-invoice issued by the dealer;

[Sanjay Sharma]

Dear Sir,

We had pruchased the raw material and as per UPVAT provisions we had availed the VAT credit as ITC at that time now, supplier has rivised the rates with retrospective effect and raised the supplimentary invoice for the same, now our query is-

1. Can we avail the VAT credit on this supplimentary invoice raised by the supplier due to the rate rivision, as we can avail the CENVAT credit of the Excise duty charged by the Supl.inv. but for that there is a separate provision in the Cenvat credit Rules, 2004, but as far as the UPVAT is concerned we are not sure about VAT provisions and VAT credit in case of supl. inv. pls. give your valuable advice.

Regards.

 

[YAGAY andSUN]

If supplimetary Invoice is issued on Tax Invoice Format and it is incorporated in the returns, then you would be able to avail the ITC.

AI Summary

Input Tax Credit allowed when a supplementary invoice is a proper tax invoice and is included in VAT returns. A purchaser may claim Input Tax Credit on a supplier's supplementary invoice only if the supplementary document is issued in the prescribed tax invoice format and the purchaser incorporates it into their VAT returns, because the rule allows deduction for tax amounts realized from the purchaser separately on a tax invoice.