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Input credit reversal

Dhina (Executive Finance) (59 Points)

25 November 2016

Hello Sir, I want to know about the ITC Reversal of while transfering the products Tamilnadu to Karnataka. The products was purchased in Tamilnadu Some products sold in Tamilnadu the balance products are transferring to Headoffice. So i need reverse the ITC or we can adjust the ITC in future sales or We need reverse any partially regards Dhinagaran

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CA. Vinodh Kothari (Chartered Accountant) (2094 Points)
Replied 25 November 2016

If the product is purchased in tamilnadu and sold in tamilnadu then ITC reversal is not required. ITC reversal @ 3% is required if stock transfer of goods is made to other state provided you obtain Form F fro m your head office and balance ITC can be adjusted against future sale. If you don't obtain form F then full ITC should be reversed and CST tax at full rate should be paid.

VK