Doubts in TNVAT

[Vivek ram]

Dear Experts,

I am quite new to Tamilnadu VAT filing. Having following doubts. Kindly please clarify..

1. If some VAT/CST invoices are cancelled (due to product returned by customer), we can ignore such invoices during VAT filing or is there any procedure to show such invoices also in Form I and Form 1..

2.In VAT filing, In Annexure II (Details of sales), there are many categories like First Schedule (F), Stock trnafer to Branches, etc.. Please let me know what category I should select for (i) Sales within Tamilnadu, (ii) Sales outside Tamilnadu.

3. I read the following in recent TN budget speech -
' Clause (c) under Section 19(5) of TNVAT Act,
2006 will henceforth be withdrawn to enable
the dealers to claim Input Tax Credit on the
inter-State sale of goods without ‘C’ form.
This measure will eliminate additional burden
on the dealers effecting inter-State sale of
goods without ‘C’ form.'

Please clarify what it means.. Does it means that hereafter TN VAT dealers need not submit C forms for 2% sales..?

4.We are Traders of Solar power products. We purchase many solar products like Solar panels, Inverters, Charge controllers,etc and integrate them and install in customer's place. I learnt some solar businesses bill the customer just as one single final product as 'Solar power plant 1kw - ..., Tax 5% ...', whereas in Input, it is a combination of many products. Since we are a trader , in our bill, we need to mention each and every product individually Or can we bill all of them together as above (mentioning the power plant capacity as a single product).

5.VAT for batteries is 14.5% and for all other renewable energy products (code 2117) it is 5%. I learnt some businesses, buy batteries @ 14.5% whereas while selling to the customer they bill as 'Solar power plant .. , VAT 5%'. That is for the total value they mention it as a single product and bill it for 5%. Is this valid?

6.Are Traders not entitled to change a product and sell? That is, for solar panel mounting we need steel structures. We need to buy mild steel angles and fabricate the structure. Input as 'steel' and output as some other product (i.e., like solar module mounting structure), is this correct or wrong?

7.Also if we want to deal with Steel, do we need to have any special mention for the same in TNVAT RC?

Thank you in advance.

Regards,
Vivek

AI Summary

Clarification Sought on Tamil Nadu VAT Filing: Invoice Handling, Input Tax Credit Changes, and Solar Product Billing Practices An individual new to Tamil Nadu VAT filing sought clarification on several issues, including handling canceled VAT/CST invoices, categorizing sales within and outside Tamil Nadu, and understanding recent changes in the TNVAT Act regarding Input Tax Credit. They also inquired about billing practices for solar power products and the correct VAT rates for batteries and renewable energy products. Additionally, they questioned whether traders could modify products for resale and if special registration is required for dealing with steel. A respondent provided detailed answers, advising on invoice handling, sales categorization, and the implications of recent legal changes.