Dear All,
We are manufacturers and our product rate of tax in TNVAT is 14.5%. We are supplying our items to defence sectors to interstates. We have asked for concessional tax @ 5%. TN govt. we got clarification that we can supply the items @ 5% . Also we have sold to interstates like bangalore @ rate of 5% for past 5 Years. This year from Sales tax they came for audit and concluded that this clarification given is only for sales doing within TN and not for the interstates and given notice the pay the difference amount of tax 9.5%. when we consulted with many of tax consultants they telling that there is no any other way and we have to pay 9.5% or otherwise we have to get C form from the customers then it will be only 2%. But our customers has already completed their assessment and they are not providing the C forms.
Kindly guide as what to do.
Thanks in advance
JOTHI
CAclubindia
