tnvat industrial input certificate clarification

[Ramakrishnan Seshadri]

Dear Sir,

We are manufacturers of automobile parts and sell to our customers at concessional rate of 5 percent ( that is against industrial input certificate).

At the end of the year, we will collect the tnvat industrial input certificate as per vat act  (under rule 6(3)(b) from the customers and submit the same to the sales tax authorities for the assessement..

One of our customers issue the industrial input certificate which will  not  be as per the sales value. They will deduct  Retro debit (i.e. cost reduction etc) amount and issue the certificate.

Say for example the sale value is Rs.100/-. The certificate  has to be received is for Rs.100/-..Suppose the retro debit amount is 10/- then the customer will issue the certificate for Rs.90/- only after deducting the retro amount.

During the assessment the industrial input certificate  has to be tallied with the assessable value as per the returns as per the sales tax department.

The Certificate will not match with the assessable value of the returns if there is deduction.

The sales tax department will ask us to pay the differential tax for non submission of iic for the debit amount of Rs.10/-

How to solve this issue.

Whether we have to file a revised return .

could any body give us suggestion

Regards.

S.Ramakrishnan.

AI Summary

Manufacturer Faces Sales Tax Demand Due to Certificate Discrepancy; Advised to Clarify During Assessment, Not Revise Return. A manufacturer of automobile parts sells products at a concessional rate of 5% against an industrial input certificate, which is collected annually for tax assessment. A customer issues a certificate reflecting a reduced sales value due to a retro debit, leading to a mismatch with the assessable value. This discrepancy results in the sales tax department demanding payment for the differential tax. The manufacturer seeks advice on resolving this issue, questioning whether a revised return is necessary. Responses suggest clarifying the situation during assessment rather than filing a revised return.