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Cst sales@5%
Dear experts I seek an answer on my query, please help me:
I purchase goods by paying VAT @ 5% and sell those by charging CST @ 5% with a condition that i will not received form 'C' from party. My query is can I carry forward input VAT paid to ITC in this case or do i have to reverse the same.
Replies (4)
Unless your state VAT law says you to reverse ITC, you need not reverse it. You can set off this ITC first with OTC on local sales and if there is remaining ITC you can use it to set off against CST collected, and even after setting of against CST, that ITC can be carried forward to the next month
Thanks very much for replying Dear Mr. Sundararajan. But talking about state laws even the CT department does not have any clarity on this issue. Thereby I request expert members of CA club in addressing my query. And I apologise for i did not mention my state. My Company is registered under TN VAT(Tamilnadu).
If it's TNVAT, then am sure that you need not reverse any ITC. Section 19(2)(v) stating such reversal has been omitted from the TNVAT Act, w.e.f 1.4.2015
Thanks again Mr. Sundararajan.
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