Traders can carry forward input tax credit to next fiscal:Govt

The Delhi government today provided a big relief to the city traders by allowing them to carry forward input tax credit to next financial year and extending the last date of submission of R-9 forms for last three years, up to June 30.
The government's move comes with an aim to simplify business for the traders in the national capital, an official release said today.
As per the existing provisions, a trader can carry forward the excess tax credit during the same year only. The traders perceive that this restriction curtails their freedom to carry forward the excess tax paid.

Also, due to this restriction many wholesalers would not be able to sell the excess stock to retailers towards the end of the financial year as retailers would not be eligible to carry forward the tax credit to next financial year, the release said.
As per the announcement, now the Finance department has proposed to allow traders to carry forward the excess tax credit to next year to adjust the output tax liability in the next tax period, the official said, adding that to implement this, a note will be tabled in the next cabinet meeting.
The due date for submitting the R9 form has been extended to June 30 from existing March 31, beginning from the financial year 2011-12.

The traders will now be free to submit the said forms, from financial years 2011-12, 2012-13, 2013-14 by June 30, the release added.