VAT Return Filing
Periodic Value Added Tax and Central Sales Tax returns for dealers in liquor and petroleum products, from computation through to payment and filing.
A registered dealer must file a Value Added Tax return for each period prescribed by its state, declaring turnover of sales and purchases, computing output tax at the applicable schedule rates, claiming any set-off of input tax the state allows, and paying the balance before the return is filed. Where interstate sales are made, a parallel return under the Central Sales Tax Act is filed for the same period, supported by the declaration forms collected from buyers.
What our VAT return service covers
The monthly cycle, run to the state's calendar and reconciled to your books.
- Determining the return periodicity applicable to you for the current year
- Classifying sales against the schedule entries and rates notified by the state
- Computing set-off of input tax and applying the reduction and retention rules the state imposes
- Preparing the parallel Central Sales Tax return and tracking declaration forms due from buyers
- Paying tax and interest through the state challan before the return is filed
- Filing revised returns where errors, credit notes or rate corrections are identified later
What goes into a VAT return
The four computations behind every filing.
Turnover Classification
Sales split between schedule rates, exempt sales, interstate sales, branch transfers and sales made to exempt or specially rated buyers.
Set-Off Computation
Input tax credit under Value Added Tax is far narrower than under the Goods and Services Tax, with retention and reduction rules that differ by state and by commodity.
Declaration Forms
Concessional rates on interstate sales depend on collecting the prescribed declaration forms from buyers, and unsupported claims are taxed at the full rate.
Revised Returns
Most states allow a revised return within a prescribed period, which is often cheaper than leaving the correction to be found at assessment.
Our process
From initial consultation to completion.
Data Collection
Taking the sales and purchase registers for the period and tying them to the books.
Computation
Working out output tax, admissible set-off and the net amount payable for the period.
Payment
Generating and paying the challan within the due date, with interest where a delay has occurred.
Filing and Records
Filing the Value Added Tax and Central Sales Tax returns and archiving the acknowledgements for assessment.
Why VAT returns are harder than they used to be
What sets our approach apart.
The turnover is split across two laws
A business selling both food and liquor, or both goods and diesel, has to divide one set of books between a Goods and Services Tax return and a Value Added Tax return every month.
Set-off rules are narrow and commodity specific
States restrict or deny set-off on several commodities and require proportionate reduction in defined situations, so full credit is rarely available.
Declaration forms decide the rate
An interstate sale at a concessional rate becomes a full rate demand at assessment if the buyer's declaration form was never collected.
VAT return questions answered
What people ask before engaging us.
VAT returns pending and books split across two laws?
We will compute, pay and file, and reconcile the split before the auditor does it for you.
