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ITC reversal in TN VAT

srinivas (sr accountant) (25 Points)

27 July 2015

Defination of total turnover for calculation of ITC rversal under TNVAT

Dose total turn over includes exempted sales like branch transfer and export sales .

For which of below ITC reversal is applicable ?

a) CST Sales @ 2% C form received

b) CST Sales @ 2% C form NOT received

c) Branch Transfer form F received

d) Branch Transfer form F NOT received

e) Export sales .

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3 Replies

B.N.Dharmendra (Senior Manager Indirect Taxation) (136 Points)
Replied 28 July 2015

After the TN Budget in April'15, calculation of ITC reversal for Interstate sales with or without Form-C is removed and it's applicable on Stock transfers, exempted sales, samples /free/damages, Mtrls purchased locally but transferred to other branches/job work locations out side the state. and Exports and SEZ with in State is always exempted from ITC reversal.so. Pl. refer to Sec 19. in detail.

chandra sekar (Manager-Accounts) (387 Points)
Replied 14 January 2016

Dharmendra is absolutely right and a good presentation of reply. other members also try to reply for any querries like Mr Dharmendra.

V K Vijayaraghavan (PRACTICE) (186 Points)
Replied 25 January 2018

Dear Mr Dharmendera

I just noticed your clarification which is relevant in my case also . You mean to say that input credit availed cannot be disallowed for stock transfers made to the co's owned Branch , The dept is dis allowing above on the ratio 3/5 . Also for the calculation they are computing as below

ITC CLAIMED XSTOCK TRANSFER / TOTAL SALES (VAT+CST ( INCLUDING STOCK TRANSFERS)

This was done from FY 2012-13 TO 2015-16 at one go after asst done and tax demands fully paid

Plesae give your advise

Thanks

V K Vijayaraghavan

M no 0202256