TN govt- ITC reversal for CST2% sales

[venkat eswaran]

Dear Sir,

TN VAT  for CST sales 2 percent    ITC reversal 3 percent  is applicable to Nov13 return ?

Pl provide the ITC reversal amount for the following exmaple.

Total ITC taken Rs. 5000/-

Total interstate  CST 2 percent sales [against C form]  is Rs. 75000/- & Total sales is Rs. 100000/-

How much ITC reversal i have to done. pl give calculation with the above example.

Thanks,

Venkat

[Nagarajan Kannan]

 

Hi

I attach a sample calculation for your reference. Anyway you may discuss the same with your

ST consultant before you prepare your return.

		ILLUSTRATION
		INPUT TAX		INPUT TAX	PURCHASE	VALUE
Original rate	5 percent	20000	14.50 percent	29000	5 percent	400000
Reversal rate	3 percent	12000	3 percent	6000	14.50 percent	200000
Balance	2 percent	8000	11.50 percent	23000
		CST Sales 2 percent		100000
		Proportionate Reversal for CST Sales 2 percent
		Reversal out of 5 percent -1	1200	(12000*CST Sales/Total Sales)
		Reversal out of 14.5 percent -2	600	(6000*CST Sales/Total Sales)
		TOTAL	1800
		TOTAL TURNOVER	Rs	output VAT/CST
		VAT 5 percent Sales	600000	30000
		VAT 14.5 percent Sales	300000	43500
		CST 2 percent Sales	100000	2000
		TOTAL	1000000	75500
		TOTAL TAX PAYABLE
		VAT	CST
	OUTPUT TAX	73500	2000
	INPUT TAX	49000	0
	Less: To be reversed-CST sales	1800
	Balance Input tax available	47200
	NET OUTPUT VAT PAYABLE	26300
	CST PAYABLE	2000

 

[venkat eswaran]

Dear Sir,

Thank u very much for ur reply with example.  Sir i have one doubt, CST sales includes CST amount also or taxable Turnover? & Total Sales means  included VAT +CST or Taxable Turnover?

Pl give ur valuable feeback.

Thanks

Venkat

 

[Nagarajan Kannan]

Hi

Total Sales excludes VAT and CST. It does not include

VAT or CST amount.

Regards

Kannan

 

[Thiru sambandam]

Hi,

Mr.Venkat

Apply below formula,

Sales Effected with C form

ITC Claimed * CST Sales 2 percent                  3

*

Total Sales (VAT+CST)                          Rate of Tax

[venkat eswaran]

Thiru Sambandam sir,

 

Thanks for your reply and formula, i have one query CST sales includes CST 2 percent amount? Total sales includes VAT + CST amount?

I cheqcked with our range AC he said it is inclusive CST  sales includes CST 2 percent and Total sales included CST and VAT amount.

Kindly clarify

Venkat

 

 

[Ravikumar muthusamy]

it is absolutely sales amt only without tax amt

AI Summary

ITC reversal for CST sales must be prorated across input tax, reducing available credit and increasing net VAT payable.
Reverse input tax credit for CST 2 percent turnover by prorating input tax across purchase-rate heads and calculating reversal for each head as the input tax attributable to that head multiplied by the ratio of CST taxable turnover to total sales (sales figures excluding VAT/CST); deduct the aggregate reversal from total input tax to determine balance credit available against output VAT while CST is discharged separately.