Industrial input clarification-tn vat

Dear All

 

Greetings of the day...!

Our manufacturing company selling goods which is falling under TN VAT code 2067, Which is chargeable @ 5%.

Here i want to know whether this rate will change if my Customer is a dealer i.e. he is purchasing the goods for reselling and if he is a manufacturer. i,e, if my customer is Using the goods for manufacturing his parts.

In the above code it has given as industrial Input, whether it means that The product which i am selling to my customer he has to use it for maufacturing input for his product.

Replies (5)
Dear Kishore in my opinion rate will not get changed. If you are issuing a tax invoice then the said manufacturer can take input of vat paid. Regards
CST will be applicable if interstate sale made please consider the same.

Dear Manoj

What you have said is right.

Kinldy refer TN VAT Act. As per the Schedule if my product sold to an Industrial Consumer My rate will be 5% and if am selling to a Dealer my rate will be 14.5%.

I want to have the confirmation on the above.

 

 

Dear Kishore i cant tell you about TN VAT coz not in my area of work. So just wait for other replies. :)
If you selling the goods falling under industrial inputs category to a customer other than the industrial customer, it will be charged at 14.5%. Example:-refer tnvat site, a clarification issued for the item "PRIMERS"

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