VAT returns: Relief for traders as UT allows old form
January, 20th 2017
Giving relief to the traders, the Department of Excise and Taxation has kept in abeyance the operation of the amendment made in the VAT Form 15.
The administration amended the VAT Form 15 in July 2016 on the pattern of Punjab, making it mandatory for the traders to reverse the input tax credit on the closing stock. The amendment was opposed by the traders.
The department received representations from various trade organisations that they were unable to calculate their stock position in compliance with the amendment in Section 13(1) of the Punjab Value Added Tax Act, 2005 as extended to Chandigarh. An officer of the department said that keeping in mind the representation, the operation of the aforesaid amendment has been kept in abeyance and the traders have been given an option— either file their return in the older form or the amended version till the fourth quarter without reversal of the input tax credit on the closing stock.
In the amended VAT Form 15, the dealer was supposed to reverse the input tax credit (ITC) on the value of the closing stock and resultantly, he was supposed to deposit the tax on the closing stock. This was causing a great financial burden on the dealers. The option would remain available for filing the returns for the second and third quarters of 2016-17.
Ram Karan Gupta, chairman of the VAT Advisory Committee of the Chandigarh Beopar Mandal, welcomed the decision saying that they had raised the concern with the administration.