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.
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