In the state of Tamilnadu, what is the rule of input credit reversal? Suppose in the partcular month, total local purchases made for Rs. 1000/- plus tax Rs. 50/- ( @ 5%). It means a dealer is eligible input credit for Rs. 50/- if it sells within state. If it sells locally (Rs. 20%), centrally (25%) & also sending to branches (55%) out of state against F form then how much will be input credit. I know that I am eligible input credit on sales (Locally & Centrally) but not eligible input credit on stock trf. out. My question is that what is the % of tax (2% / 3% / 4% / 5% or else), we'll not get input credit or we'll have to reverse input credit if input credit taken in earlier month. Pls. reply with rule.
CAclubindia
