Vat input credit
D.G. Mohan
(Querist) 29 October 2012
This query is : Resolved
We have a purchase invoice for purchase of goods with TIN no. printed on the invoice. Based on that we took input tax credit. But after one year it was found that the TIN no. on the invoice was fake. What will be the outcome if the vat dept. comes to know of this?
Sivadas Chettur
(Expert) 30 October 2012
To claim input credit you require a valid purchase bill with the necessary particulars and in the form prescribed. Fake bill cannot be the foundation of input credit for the simple reason that the govt has not realized the tax which the fake bill purported to have collected from you. The proper remedy is to remit the tax if u have claimed the same and proceed to recover from the party who issued the fake bill. I feel that even a criminal complaint can also be lodged and some of the experts in criminal law in this august forum may be in a position to guide u.
siva208@yahoo.com
