TNVAT ITC reversal for CST 2% sales

[venkat eswaran]

Dear Sirs,

Tamil Nadu govt TNVAT issues amendment in ITC reversal  for 2 percent CST sales against C form as follows:

Till date  Inter state sales against C form [2 percent at present] no reversal of ITC required

from 11.11.13 inter state sales against C form - Input tax credit allowed in excess of 3 percent of Tax.

Kindly clarify what is that  ITC ALLOWED  IN EXCESS OF 3 percent OF TAX.

Whether we have to reverse  any ITC for 2 percent inter state sales and how much  to be reversed.

Pl give your valuable reply

Venkat

 

 

 

AI Summary

Tamil Nadu VAT Amendment: 3% ITC Reversal on 2% CST Sales Sparks Confusion and Legal Challenges Among Traders A discussion on the Tamil Nadu VAT (TNVAT) amendment regarding Input Tax Credit (ITC) reversal for 2% Central Sales Tax (CST) sales against C forms highlights confusion and requests for clarification. The amendment mandates a 3% ITC reversal for such sales unless goods were imported or purchased under CST. Traders and manufacturers express concerns about the complexity and potential litigation involved, especially for manufacturers. Queries revolve around calculating ITC reversal, with examples provided. Some parties mention legal challenges against the amendment, including a reported stay order by the Madras High Court for manufacturers. Participants seek clarity on the implications and procedures for compliance.