Input tax credit (TN VAT)

[Guest]

We are registered dealer in the state of tamilnadu and if we purchase the material from Aurangabad with VAT or CST 12.5 percent from manufacturer (registered as cenvat) , can we avail input tax credit for this in TN, or how to purchase the material from outside TN state without the need for C Form and with input tax credit. Plz clarify.

[YAGAY andSUN]

Dear Abbalagan,

Any material purchased from outside of Tamil Nadu would be treated as InterState Purchase on which no Input Tax Allowed.  If you purchase material without C form then in this scenario you would have to pay the full rate of tax on such material.

Regards

Team YAGAY & SUN

[Guest]

Dear Mr. Anbalagan,

You cannot avail input tax credit on your purchase done from other State. The input tax credit is exclusively allowed for the purpose of encouraging trade within the state and the dealer community should be freed from the multiple taxation and the ultimate benefit should go to the customers.  Here you have purchased goods from Aurangabad, hence you are not eligible for Input tax credit in Tamilnadu. The same analogy for purchasing the goods with C or without C form.

AI Summary

Input tax credit denied for interstate purchases; C-form does not confer credit eligibility, buyer must pay tax. Interstate purchases from another state are not eligible for input tax credit under Tamil Nadu VAT; supplier registration status does not change this. Possession or absence of a C form does not confer input tax credit; buying without a C form requires payment of the applicable tax on the transaction.