Implication of DVAT

[Manoj Kumar]

We issue an Office Order for deduction of an amount equivalent to VAT amount for late submission of Invoices. We have deducted the same for 3 months amounting Rs. 25 Lacs for Nov. 2011, Rs. 8 lacs for December 2011 but we have not taken any effect of DVAT.

 

Please Guide me.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in this issue? If not please inform.

AI Summary

VAT deduction for late invoice submission raises compliance issues where DVAT treatment was not applied, requiring clarification. An office order deducted amounts equivalent to VAT for late invoice submission; deductions were effected for specified months but no adjustment under DVAT was made. The primary issue is whether such withheld amounts must be treated and accounted for under DVAT, and what procedural and compliance steps (tax accounting, adjustments to output tax, recordkeeping, or vendor notification) are required.