Imports regd

Sir, Iam from chennai. I am planning to import computer parts from china,singapore etc., for resale in local and interstate. I want to know wether TNVAT or CST has to be paid on purchase of imports(under sec12). and also TDS has to be paid on imports,  whether it should be shown  in form I or form 1  return. Pls help

Replies (4)

VAT and CST will be charged on the sales made.

However if the sales falls under sec 5(2) of the CST Act you may be granted exemtion on producing necessary documents

sir, thanks for your reply . do u mean to say that i have to pay only when sales made.

hope no need to pay tn vat on imports like purchase tax u/s 12 (purchase from unregistered dealer) and adjust the same on vat during sales. pls clarify

Section 12

(1) Subject to the provisions of sub-section (1) of section 3, every dealer, who in the course of his business purchases from a registered dealer or from any other person, any goods (the sale or purchase of which is liable to tax under this Act), in circumstances in which no tax is payable by that registered dealer on the sale price of such goods under this Act, and either -

(a) consumes or uses such goods in or for the manufacture of other goods for sale or otherwise; or

(b) disposes of such goods in any manner other than by way of sale in the State; or

(c) despatches or carries them to a place outside the State except as a direct result of sale or purchase in the course of inter-State trade or commerce or in the course of export out of the territory of India; or

(d) installs and uses such goods in the factory for the manufacture of any goods,

shall pay tax on the turnover relating to the purchase aforesaid at the rate specified in the Schedules to this Act.

(2) Notwithstanding anything contained in clause (24) of section 2, the dealer who pays tax under sub-section (1) shall be entitled to input tax credit on the goods specified in the First Schedule.

if you purchase from any registered dealer then you will be liable to pay TNVAT but if the goods are imported subject to the provisons of customs act any special rate of duty may be imposed on the goods equal to the rate of VAT rate as applicable. Section 3(5) of custom tariff act 

sir,

Thank you very for the valuble reply.

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