reversal of itc on cst sales

[Ramakrishnan Seshadri]

Dear Sir,

During november 2013 the tnvat has issued a notification on reversal of itc for cst sales.

Could any body inform us whether we have to reverse or any stay has been obtained for this reversal issued by the high court.

Regards,

s.Ramakrishnan.

[Surender Gupta]

Though I am not dealing with TNVAT,  but made an attempt to find the answer to your query. Accordingly I find that, 8-11-2013 state government has issued a notification amending the Section 19 of the TN VAT Act to restrict the credit in case of central sale.

AI Summary

Reversal of input tax credit on central sales: state notification restricts credit and question raised on stay. A state notification amended the VAT credit entitlement to restrict input tax credit on transactions treated as central sale, requiring dealers to reverse credits that fall outside the revised eligibility; a query remains whether a judicial stay has been obtained, and the respondent noted issuance of the amending notification without reporting any stay.