Reversal on Form F is required

[Guest]

Dear Team,

I have a query, how to calculate reversal against form F ( Stock Transfer ). Is this reversal is required for assessment. If yeas where to show this figure in form.

Regards

Jeyakumar

[YAGAY andSUN]

Dear Jeyakumar C,

You would have to reverse ITC in excess of 2% or as per the formula as mentioned in TNVAT Act. Yes, reversal is mandatory in case of transferring of stock under CST Act. There is no requirement to mention this amount on the Form F rather it would be mentioned in the Statutory Returns.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[LAKSHMINARAYANAN TR]

W.e.f 11.11.2013 ITC upto 5% are to be reversed in case of Stock Transfer under Sec 19(4) of TNVAT Act. Prior to 11.11.2013 it was 3%.

[Guest]

Thank you Sir...

AI Summary

Input Tax Credit reversal required for stock transfers; disclose reversal in statutory VAT returns rather than on Form F. Reversal of Input Tax Credit is mandatory on stock transfers under the sales tax framework; taxpayers must reverse ITC exceeding the allowance specified by the applicable VAT formula and disclose the reversal in statutory VAT returns and assessment schedules rather than on Form F.