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.

AI Summary

Input Tax Credit Not Available for Interstate Purchases in Tamil Nadu, Even With C Form; Full Tax Rate Applies A registered dealer in Tamil Nadu inquired about availing input tax credit for materials purchased from Aurangabad with VAT or CST at 12.5 percent. Two responses clarified that input tax credit is not available for interstate purchases, as it is meant to encourage intrastate trade. Both replies emphasized that purchasing goods from outside Tamil Nadu, whether with or without a C Form, does not qualify for input tax credit in Tamil Nadu. The full tax rate applies to such transactions without a C Form.