March 8, 2015 2:39:35 am
Deputy Chief Minister Manish Sisodia told traders’ associations on Saturday that carrying forward of Input Tax credit of VAT (value added tax) will now be allowed in Delhi. Sisodia was addressing traders’ associations of all major markets and trades in the presence of top officials, including VAT commissioner Sandeep Khairwar.
The move is aimed at making it simpler for traders to continue their business. Earlier, it was mandatory for traders to claim their refund before March 31. Now, the AAP government has decided to make “necessary amendments in existing laws and rules to allow carry forward of input tax credit.”
As per existing provisions, a trader can carry forward the excess tax credit during the same year only and has to claim refund of the excess credit in his returns for the last quarter of that year.
“The traders perceive that this restriction curtails their freedom to carry forward the excess tax paid. Since this amendment was carried out in September 2013, a number of traders have claimed refund during the last quarter of the 2013-14 financial year,” Sisodia said.
The Finance department proposes to allow traders to carry forward the excess tax credit to the next year to adjust the output tax liability in the next tax period, a Delhi government release on Saturday stated.
The release also said the due date of the R9 form – which is the online furnishing of the details of statutory forms available with the dealer – has been extended to June 30 from March 31 from the financial year 2011-12.
Many dealers had already furnished their details in the old R-10 form and were required to furnish R-9 again after the change in rules. Later the department changed its stand and allowed the dealers who had already furnished R-10, to skip re-entry in R-9.
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