If your business is registered under VAT, you are required to submit details of purchases and sales of the business to the Inland Revenue Department periodically. The frequency of submission may be monthly or quarterly based on the registration type and it must be submitted to the Inland Revenue Department within 25 days of the subsequent calendar month.
It is possible to submit these details online which reduces the time and effort of visiting the tax office. We are sharing this blog to keep our clients informed about the processes and educate everyone else who is attempting to do it themselves.
STEP 0: Calculate the Totals
Before you start online entry first calculate the total amount of Purchases, Sales, Import, and Export for the period. This will help later in the process to fill the online VAT Entry form.
STEP 1: Registration
This process has to be carried out each time you submit the purchases and sales details
- Then click on “VAT” in the menu and on “VAT Return Entry”
- Provide the details regarding your “PAN”, “Username”, “Password” etc and click on the “Register“ button.
After registration, a new page will appear giving the Submission Number. Save the submission number for future use & click on the “Proceed” button.
STEP 2: Timeframe of Details
- A new page asking multiple questions will appear filled in page one by one starting with FY, Monthly/Quarterly/six-monthly & month of which return is filed.
- Scroll down after filling the above details
STEP 3: Sales/Purchases Details
Fill the following details:
- Taxable Sales & VAT on sales
- Export Sales ( If any )
- Tax exempted Sales ( If any )
- Taxable Purchase & VAT on Purchase
- Taxable Import & VAT on import ( If any )
- Non-Taxable Purchase ( If any )
- Non-Taxable Import ( If any )
STEP 4: VAT Payable/Receivable & Number Controls
- After filling all the details scroll down to the section on VAT payable /receivable.
- There is an option below total taxable amount as “last period credit” if we have last period credit the fill the box with the credit amount after that if VAT payable comes then we should pay the same amount to the tax office if receivable/credit balance come then we don’t have to pay the amount, balance credit will be transfer to next month.
**Note: Credit amount means “Excess Amount of VAT paid Till Last months”
- If VAT has to be paid for the month then after paying VAT amount Voucher Number & VAT Paid amount should be shown on the box asked. In case you have not paid the VAT amount, it is possible to save the details of the form which can be submitted later.
- After that, the next step is to fill the number of Sales bills & purchase bills.
STEP 5: Submission & Verification
- At last after filling all the details, click on the check-box next to “I verify that the information mentioned in this tax statement is true” at the end of the page and press “Save”.
- Press “Submit” and “Verify”.
- Fill the PAN number, Password and due/credit amount and press “Ok”
- Pop up box will announce “Verified Successfully”.
- For Taxpayer self-verification (as mentioned in STEP 5), the taxpayer should take the General login username & Password from the tax office.
- A penalty of Rs.1000 per month is applicable if the detail of VAT is submitted later than the due date.
This blog was written by Amisha Chalise to share the online VAT filing process with our clients. If you need further details and support regarding this, please mail us at email@example.com.