Tnvat rate

Dear Sir,

As per section 7 of TN VAT: The rate of tax for star hotels is 14.5% ( INPUT VAT Credit) is eligble for this rate of tax. Other than star hotels are levied with @ 2%...(no input tax credit is allowed)

You can pay compound tax under section 8 if your turnover is less than 50 Lakhs per annum. (no input tax credit is allowed)

i have attached a clarification and advanced rulling filled by a restaurant in chennai you can get clarity on it.

Regards,

Suriyaprakash.S

9942628313