Hello All,
My query is w.r.t. TNVAT
Suppose a person has a HO @ Chennai and purchases goods locally from registered dealers and proper Vat bills and thereafter he transfers the goods to other state (Say Kerela) to his branch and thereafter the goods (Form F) are sold in kerala. Can HO claim the input and is there any restriction on the % of input i.e., maximum of 4 or 12.5%
Thanks In advance
Nitesh
| Originally posted by : Nitesh Bhandari | ||
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Hello All, My query is w.r.t. TNVAT Suppose a person has a HO @ Chennai and purchases goods locally from registered dealers and proper Vat bills and thereafter he transfers the goods to other state (Say Kerela) to his branch and thereafter the goods (Form F) are sold in kerala. Can HO claim the input and is there any restriction on the % of input i.e., maximum of 4 or 12.5% Thanks In advance Nitesh |
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Hello
No ITC will be allowed on its purchases of goods which are sent for consignment sales or to branches to other states.
Though a provision has been suggested in the white paper that the restriction is only applicable up to the tax paid on 4% rate and if tax is paid @ 12.5% then ITC will be allowed over and above 4% of the tax i.e. 8.5% of the purchase price of goods will be allowed as ITC but if the tax paid is only 4% then No ITC will be allowed.
Have a great day.
CAclubindia
