Tamil nadu VAT -works contracts

K.chandrasekaran (Partner) (210 Points)

12 June 2010  

one of  my client who is an assesse  under  tamil nadu  vat act  in signage  business  submitted his  option  under sec 6 to pay vat  under compunding  scheme  for works  contracts  at the  beginiing of the year without  specifiying any particular contract from  amonst  several contracts  from  various  parties.

Also he sells flex printed boards and other boards as sale of  goods and  has sold condemned machinery during the year.

he  has  been submitting  form L returns only  as required  under the  act and  now  he submitted form I also for the same financial year  inrespect of  sale of goods and old  machinery .

Now the CTO says  he  can submit only  form  L an not form I also for the same year  as  he  has  opte dto  pay vat under sec 6.

Form L does not contain any provision  to enter sale of  goods VAT and input claim.

Is this  ccorrect?

Further it is  undrsstood that the  option  must  be for  contact wise and anot necessarily  for all contracts.

Hence  what is the correct position of  law/

Also recently  vat  has  been amended that a revised return  can be submitted?

Does this  apply to  option also.

This may please be clarified by readers pl.