I have a Query on TNVAT, Under Section 41. Assessee registered under TNGST Act. after TNVAT, he continued collecting tax and adjusting against purchase invoices. (Medical Ship). After completion of the FY, Assessing officer has send notice to remit the tax. Saying that U/S 41, The taxable turnover is below Rs.10.00 Lakhs, assessee should not collect tax , if collected should be remitted to government.
Guide me whether dening Input Tax credit is acceptable if taxable turnover is less than 10.00 Lakhs.?
What are options to save the client?