Tn vat doubts

Others 1285 views 7 replies

Vivek

Others

46 Points Joined April 2015

Dear Experts,

I am quite new to Tamilnadu VAT filing. Having following doubts. Please clarify..

1. If some VAT/CST invoices are cancelled (due to product returned by customer), we can ignore such invoices during VAT filing or is there any procedure to show such invoices also in Form I and Form 1..

2.In VAT filing, In Annexure II (Details of sales), there are many categories like First Schedule (F), Stock trnafer to Branches, etc.. Please let me know what category I should select for (i) Sales within Tamilnadu, (ii) Sales outside Tamilnadu.

3. I read the following in recent TN budget speech -
" Clause (c) under Section 19(5) of TNVAT Act,
2006 will henceforth be withdrawn to enable
the dealers to claim Input Tax Credit on the
inter-State sale of goods without ‘C’ form.
This measure will eliminate additional burden
on the dealers effecting inter-State sale of
goods without ‘C’ form."

Please clarify what it means.. Does it means that hereafter TN VAT dealers need not submit C forms for 2% sales..?

4.We are Traders of Solar power products. We purchase many solar products like Solar panels, Inverters, Charge controllers,etc and integrate them and install in customer's place. I learnt some solar businesses bill the customer just as one single final product as "Solar power plant 1kw - ..., Tax 5% ...", whereas in Input, it is a combination of many products. Since we are a trader , in our bill, we need to mention each and every product individually Or can we bill all of them together as above (mentioning the power plant capacity as a single product).

5.VAT for batteries is 14.5% and for all other renewable energy products (code 2117) it is 5%. I learnt some businesses, buy batteries @ 14.5% whereas while selling to the customer they bill as "Solar power plant .. , VAT 5%". That is for the total value they mention it as a single product and bill it for 5%. Is this valid?

6.Are Traders not entitled to change a product and sell? That is, for solar panel mounting we need steel structures. We need to buy mild steel angles and fabricate the structure. Input as "steel" and output as some other product (i.e., like solar module mounting structure), is this correct or wrong?

7.Also if we want to deal with Steel, do we need to have any special mention for the same in TNVAT RC?

Thank you in advance.

Regards,
Vivek

Replies (7)

dhanamganesh@gmail.com

private service Accountant

80 Points Joined August 2015

point no.1 u shoud take back the staock and show in vat/cst returns and issue creditnote and and show reversal of itc, refund of cst

point 2 sales within staste F, and sales otuside state J

Point 3 incase of cst purchases need to submit form c,govt means cst has been reduced from 5 to today 2% from charging and claiming itc govt has implemented that the csst billed 2% cooection can be adjusted from the ITC on Ramaterials credit. and reduce the burdern of addl. work.

Pint 4 ifu bill it on different products at diffrent rates then u may hv to bill for labourchaaarges for awihich u may have to pay service tax of 14% on the work of assembling done. hence billing in a single rateis advisable. to avaoid taxing at serivce addition also.

point 5 is valid.because the battaer purchase tax 14.55 will be anyhow reimbursed as ITC on Raawmaterial

point 6 TNVAT act permits so u can do

point7 u can do it provided u may have to endorse the products and activity in ur tngst/cst RCS.

with regards

p.r.ganesh

gopi

Accountant

24 Points Joined March 2012

Sir,

Please advice for CST Return @ 14.5% how to categories in Annexure II of TNVAT. While cst sales @ 14.5% showing category as J.

Please Advice

Regards

Gopi

dhanamganesh@gmail.com

private service Accountant

80 Points Joined August 2015

sir,

please clarify whether u are a cst registered dealer. in case of cst registered dealer u can issue the invoice at cst 2% only. and u will be showing the 2% in the Annexure II of the TN Vat return u have to categorise as O not as J as u presently doing. The category u should shown only for the C Form Ggeneration report in Annexure II A only as category as J. and also here u have charged 14.5% and generation of C form is also not needed please.( Please note in TNVat Annexure II sales details for interstate sales Category as O and in for the same details for C form generation in Annexure II A asl Category as J please.

with regards

P.R.Ganesh

gopi

Accountant

24 Points Joined March 2012

Sir,

Thanks for your prompt reply. Actually we are selling mobile cases in online to other state, if we sells in august & most consignment gets returned in oct. Actually We are selling to direct customer not registered dealers all over the state via speed post or courier the product.

We have registered in CST / VAT also in TN. So while we are selling products to other states, we are considering as CST sales, paying the CST 14% as FULLY what we are paying for LOCAL VAT. So far didn't shown the CST SALES & CST Returns in Annexure II of FORM I. So i wanted to show that as CST Sales and CST Return, How to categories in Annexure II of FORM I? or whether i have to show or consider as VAT sales.

Please advice.

Gopi

9962484543

gopi

Accountant

24 Points Joined March 2012

Sir,

Please advice

dhanamganesh@gmail.com

private service Accountant

80 Points Joined August 2015

Gopi sir,

u have billed on cst basis. for end use customer is who is not having CST RC. is treted as un registered dealer. since u hv billed in cst it should be included in your cst return I annexue II as sale classified under cst sales without C form. whom we have to charge the higher rate applicable for the product in the state of billing.so,u billed it under 14.5% as no- submission of c form.basis.in the annexure II and in the CST return form I .

if u sell to CST Registered Dealer then only u can charge at a concession rate of 2% provided u could able to collect form c otherwise u may to pay at the time of assessment if c form is not produced on the 2% incase charged.

with regards

P.R.GANESH