Professional Documents
Culture Documents
Presented by
The krishna District Accountants and Tax Consultants Association
Case 2
Input Tax Credit disallowed if purchaser has delayed
taking Input Tax Credit beyond 3 months
Ex: Purchaser has Rs: 1 laksh Input Tax Credit worth
purchases in March, He has to take Input Tax Credit
within 3 months. Otherwise the balance Input Tax
Credit will be disallowed
Case 3
Purchaser invoices are matching seller invoices. Then
Total Input Tax Credit claimed by the purchaser will be
allowed
Ex: Purchaser uploaded invoices for Rs: 10 lakhs. Seller
also uploaded invoices for Rs:10 lakhs. Then total Input
Tax Credit will be allowed
Case 4
Purchaser uploaded less invoices, but seller has
uploaded more invoices. Then Input Tax Credit will be
restricted upto purchaser uploading
Ex: Purchaser uploaded Rs: 1 lakh turnover, Seller
uploaded 2 lakhs turnover. Input Tax Credit on 1 lakh
only.
Case 5
Purchaser uploaded more invoices, but seller
uploaded less invoices, then Input Tax Credit will be
restricted upto seller uploading.
Ex: Purchaser uploaded Rs: 1 lakh, Seller uploaded
50,000. Input Tax Credit on 50,000 only will be allowed.
Case 6
Purchaser claimed more Input Tax Credit in VAT 200
returns but uploaded less invoices. Input Tax Credit will
be restricted to invoices only.
Ex: Input Tax Credit as per return is 1 lakh. Input Tax
Credit as per invoices 90,000. Then Input Tax Credit
eligibility is Rs: 90,000 only
Case 2
Seller reported less in VAT 200 returns, but uploaded
more invoices. Then also it is treated as sales
suppression by the seller.
Ex: Seller return turnover Rs: 1 lakh
Invoices turnover
Rs: 2 lakhs
Sales suppression
Rs: 1 lakh
Purchaser
invoices
Seller invoices
ITC
Reasons
Case1
1,00,000
1,00,000
NIL
Seller not
paid tax
Case 2
1,00,000
1,00,000
Restricted
beyond 3
months
ITC
restricted for
delay
claiming
Case 3
1,00,000
1,00,000
1,00,000
Total ITC
allowed
Case 4
1,00,000
2,00,000
1,00,000
ITC
restricted to
purchaser
Case 5
1,00,000
50,000
50,000
ITC
restricted to
seller
Case 6
1,00,000
1,00,000
1,00,000
ITC
restricted to
invoices
Case 2
Result
Dealers obligations
To check your invoice mismatch reports
immediately.
To upload all invoices by June 30.
To ensure that your seller dealer also uploads
all invoices.
To ensure that your seller dealer pay tax.
To utilise edit option to rectify mistakes in
invoices that are uploaded.
To utilise web services incase of bulk dealers
for auto copying in invoices, waybills, for
uploading invoices etc.