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Manikandan (Querist)

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)

14 October 2013 Need to pay the difference tax with applicable interest. ITC will not apply under CST

Manikandan

Manikandan (Querist)

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)

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)

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)

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)

18 October 2013 Thanks for your contribution Rengaraj Sir...

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