Purchase return

Dear Pandian

As you ask about the treatment of purchase return in tamilnadu vat form-1, I would like to say that if the purchase returns are related with same month, then the net purchases should be shown in point no. 1 (Input items) alongwith input tax credit if allowed. ex: I am registered dealer of TN and purchase goods rs. 10000 in april and return the goods rs. 2000 within same month by issuing either debit memo or passing the entry in my books of account. so in the month of april return filing  i will show my net purchases as rs 8000 alongwith itc. But if the purchase return are made in the month of may and itc of all the goods  purchased has already been taken. itc claimed earlier should be reversed. in point number 2 ( reverse input tax cerdit)

Thanks