Tn vat - itc reversal
This query is : Resolved
15 June 2013
Dear All,
Please advise me to handle the follwoing situation.
ISSUE.
we purchased a machine against form c during 2006-07, before the vat regime started.
(normal rate of sales tax was 12.5%, during that period).
During 2013-14, june we sold the same machine to a buyer at karnataka charging cst @ 14.5%
(not against form c). Our AO says that we have to reverse the relevant ITC as the sale not
supported by form C.
question.
1. Whether we have to reverse the ITC even though we deposit the CST collected on Machine sales.
2. what are the evidences to be provided for our claim.
Thanks & Regards,
R.Prakash
Please advise me to handle the follwoing situation.
ISSUE.
we purchased a machine against form c during 2006-07, before the vat regime started.
(normal rate of sales tax was 12.5%, during that period).
During 2013-14, june we sold the same machine to a buyer at karnataka charging cst @ 14.5%
(not against form c). Our AO says that we have to reverse the relevant ITC as the sale not
supported by form C.
question.
1. Whether we have to reverse the ITC even though we deposit the CST collected on Machine sales.
2. what are the evidences to be provided for our claim.
Thanks & Regards,
R.Prakash
14 August 2013
Mr Prakash,
In my opinion, as you have not availed ITC in the interstate purchase (proof -ITC claim on the opening stock as 01.01.2007), there is no liability to reverse ITC.
In my opinion, as you have not availed ITC in the interstate purchase (proof -ITC claim on the opening stock as 01.01.2007), there is no liability to reverse ITC.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Regarding ITR filing with more value than showing in AIS/TIS
- Exiting partner in partnership firm in gst portal
- TAX AUDIT QUESTION
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Banking Related Issue
- Average Cost Of High Quality Diamonds
- ITR-3 File/Error Found
- TDS offline utility
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
