14 October 2013
If Interstate Sales made @ (CST) 2%, but C Forms not to be received. For the above case whether ITC to be reversed or to pay excess tax rate applicable locally??
15 October 2013
Dear Sir, If Inter-State sale without ‘C' Form - Section 19(5)(c) says that ITC to be reversed.. Pls let me clarify in detail... Thanks in advance..
15 October 2013
The question is for Tamilnadu VAT? Right.
As per the TNVAT Act, if you are not collecting c form, then you are liable to reverse the input availed, proportionately.
In other words, input tax credit is allowable only for local sales and interstate sales/stock transfer with c/f forms. If forms are not received, ITC will have to be reversed proportionately.
15 October 2013
Thank you Rengaraj Sir, I am talking about TN VAT only... My next doubt is, earlier I paid CST @2%, whether I need to pay differential tax amount and to reverse ITC???
And how to calculate reversal of proportionate ITC??/
17 October 2013
Yes, you have to pay difference tax under CST for non-submission of C form, also you have to calculate ITC reversal.
The following is the formula:
= Value of VAT input during the month X Value of CST sale without C Form divided by Total Turnover including stock transfer, interstate sale, export sale.
Now you have to pay 3% on value arrived at by using the above formula.
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