Payment towards bankrupted party

[yujin kim]

Dear sir

We have paid some amount towards bankrupted party.

In our company if we have to pay tax, then we receive proper tax invoice written supplier's TIN no.

and we are checking whether this TIN no is available from sales tax website.

After we paying tax, we found this party is bankruptcy and they didn't do VAT return properly.

In this situation, can we get the benefit of paid VAT refund(CENVAT credit) ? and we are not sure which party we have to pay tax, and for receiving proper tax refund, which action we can do?

In conclustion, after paying tax, we found supplier is not available, or not registered in vat no, so vat no is not available. then how  can we get te tax benefit which is we've paid already.

AI Summary

Input tax credit survives seller default if purchaser paid with proper invoice, unless collusion is proved.
A purchaser who has paid VAT to a selling dealer and possesses the relevant tax invoice is not automatically barred from claiming Input Tax Credit/CENVAT credit if the selling dealer later fails to remit the tax; the seller is treated as an agent of the State, and purchaser entitlement survives seller default except where collusion between purchaser and seller is proven.