VAT Return Filing

By the end of each filing period business must compile the data on tax paid and tax collected and file the returns following the computation guidelines. A tax liability can accrue as early as the date on which an order advance is received. If no advance is received then the date of delivery or invoice, whichever is earlier, will be taken into consideration.

Sales returns: companies will be allowed to reverse the tax paid on sales returns. Bad debts: the law will have a provision to account for bad debts and recover the tax paid on such transactions.

Government may directly or through its appointed agents demand to audit the tax returns of the companies. Companies are required to maintain physical records of all purchases and supplies as also maintain complete registration details of suppliers and customers. Although a completely digital system for tax filing will be in place, the government may expect companies to furnish proof of returns. The VAT will be based on self-assessment and the onus will be on the companies to accurately account for the output and input tax.