Reversal Of ITC

[Sundar Manokaran]

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

AI Summary

Clarification Sought on Input Tax Credit Reversal for Tea Traders Under 'Reversal of In Excess of 3%' Rule A registered dealer in Tamil Nadu engaged in trading tea sought clarification on calculating Input Tax Credit (ITC) reversal due to a state government announcement regarding 'Reversal of In Excess of 3%.' The dealer purchases tea at 1% and 5% VAT rates and sells it locally at 5% and under CST at 2% with a C Form. The query was addressed by another participant asking if the issue had been clarified, inviting further communication if needed.