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Manikandan (Querist)
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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??

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 October 2013 Need to pay the difference tax with applicable interest. ITC will not apply under CST

Manikandan

Manikandan (Querist)
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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..

RENGARAJ R.K

RENGARAJ R.K (Expert)
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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.

Manikandan

Manikandan (Querist)
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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??/

RENGARAJ R.K

RENGARAJ R.K (Expert)
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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.

Manikandan

Manikandan (Querist)
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18 October 2013 Thanks for your contribution Rengaraj Sir...

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