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Industrial input clarification-tn vat

kishore choudhury (article asst.) (114 Points)

22 March 2014

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.

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5 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 22 March 2014

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

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 22 March 2014

CST will be applicable if interstate sale made please consider the same.

kishore choudhury (article asst.) (114 Points)
Replied 22 March 2014

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.

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 22 March 2014

Dear Kishore i cant tell you about TN VAT coz not in my area of work. So just wait for other replies. :)

RAVINDIRAN (Tax Practitoner) (106 Points)
Replied 22 March 2014

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"