ITC reversal in TN VAT

Defination of  total turnover for calculation  of ITC rversal under TNVAT

Dose total turn over includes exempted sales like  branch transfer and export sales .

For which of  below ITC reversal is applicable ?

a) CST Sales @ 2% C form received

b) CST Sales @ 2% C form NOT received

c) Branch Transfer form F received 

d) Branch Transfer form  F NOT  received 

e) Export sales .

 

 

Replies (3)

After the TN Budget in April'15, calculation of ITC reversal for Interstate sales with or without Form-C is removed and it's applicable on  Stock transfers, exempted sales, samples /free/damages, Mtrls purchased locally but transferred to other branches/job work locations out side the state. and Exports and SEZ with in State is always exempted from ITC reversal.so.  Pl. refer to Sec 19. in detail.

Dharmendra is absolutely right and a good presentation of reply. other members also try to reply for any querries like Mr Dharmendra.

Dear Mr Dharmendera

I just noticed your clarification which is relevant in my case also . You mean to say that input credit availed cannot be disallowed for stock transfers made to the co's owned Branch , The dept is dis allowing above on the ratio 3/5  . Also for the calculation they are computing as below 

ITC CLAIMED XSTOCK TRANSFER / TOTAL SALES (VAT+CST ( INCLUDING STOCK TRANSFERS) 

This was done from FY 2012-13 TO 2015-16 at one go after asst done and tax demands fully paid  

Plesae give your advise 

Thanks 

V K Vijayaraghavan 

M no 0202256 

 

 

 

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