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Input tax credit

Others 461 views 2 replies

Sir,

 

I have a plastic container manufacturing unit in tamilnadu. To produce container we are buying Raw Material from other state. But our most of sales involved only in Local ( within Tamilnadu).  

Here, I have to pay higher amount as CST tax for purchasing Raw Material. My local purchase is very very less.

Kindly help me if any solution for taken Input Tax Credit in CST

 

regards

Kumar

 

Replies (2)

u will have to refer the state vat laws for knoweldge of availing input tax credit in respect of interstate purchases, as all states have different rules for input tax credit...thanx

 

Dear Saravana Kumar

 

Kindly ref to sec 19 (5)(b)  deals with purchase of goods from other state . ITC is not available for those purchases irrespetive of the rate at which the same is purchased.

Kindly check if you can procure these material through some unit under C form and in turn they sell it you so that your tax liability will be reduced to 2% and lTC is available on the local purcahses.

 

Regards

Rajalakshmi.V


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