CST RENEWAL MATTERS

[Guest]

Sir In my case my party is registered TNVAT and CST dealer. My party activities is printing of inkjet code on films, packing cover issued by Britannia Biscuits and Edible Oil Covers,noting the code expiry date and mfrs date etc.n only 3/4 line on the space provided in film rolls supplied by the Parties. Only job works only entertain. Purchase of ink previously during 10-11 and 11-12 financial years purchased from outside state against c forms and tax paid at the rate of 5% local taxes under Form No I and CST Form 1 also filed as per norms. Now CST reversal initiated by the AA and asked me to pay more than 75000 as tax when we paid already 5% on entire turnover without calculating the concession of 70-30 concession on work contract people. We engage only job work no trade of ink or manufacturing activities please clarify

AI Summary

Business Challenges CST Reversal for Inkjet Code Printing, Seeks Clarification on 70-30 Work Contract Concession A party registered under TNVAT and CST, engaged in printing inkjet codes on packaging for companies like Britannia Biscuits, is dealing with a CST reversal issue. The party previously purchased ink from out-of-state suppliers, paying 5% local tax and filing the necessary forms. However, the Assessing Authority (AA) has initiated a CST reversal, demanding over 75,000 in additional taxes. The party argues that they only perform job work and not trade or manufacturing, and seeks clarification on the application of a 70-30 concession for work contract entities.