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

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.