Dear Sir,
I'm a Registered dealer of tamilnadu and also i'm doing trading activity for the commodity of Tea. I'm a purchasing a Tea from Local Dealers @1% and 5% and availed ITC. After that i am selling the Tea @ 5% Local Sales and CST @ 2% with C Form. From 11.11.2013 the TN Gov announced 'Reversal of In Excess of 3%', Sir Please explain how to make a ITC Reversal calculation.
Thanks and Regs
Megha
Input tax credit reversal guidance for calculating and allocating excess ITC where a threshold-based adjustment applies. Reversal of input tax credit is required where a dealer availed credit on purchases taxed at different rates but makes both local taxable sales and interstate sales under C form; the state directive mandates adjusting claimed ITC exceeding a prescribed threshold by allocating inward supplies by rate, apportioning ITC between taxable local and interstate/exempt supplies, identifying excess credit, and quantifying the amount to be reversed with supporting invoice reconciliation. (AI Summary)
TaxTMI 
TaxTMI 
