TN VAT INPUT REVERSAL

[Rambabu Dompaka]

Dear Sir,

I read the following 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' Clause (c) under Section 19(5) of TNVAT Act, 2006 will henceforth be withdrawn to enable the dealers to claim Input Tax Credit on the inter-State sale of goods without ‘C’ form.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..?

Regards,

Rambabu.D

AI Summary

Tamil Nadu VAT Act Amendment: Dealers Can Claim Input Tax Credit on Interstate Sales Without 'C' Form Requirement. A discussion on a forum addressed the changes in the Tamil Nadu Value Added Tax (TNVAT) Act, 2006, specifically the withdrawal of Clause (c) under Section 19(5). This amendment allows dealers to claim Input Tax Credit on inter-state sales without the need for a 'C' form, eliminating the previous requirement to reverse input tax credit for such sales. The change aims to reduce the burden on dealers and enhance competitiveness for Tamil Nadu's manufacturing industries. Despite this, one respondent noted that the requirement for Form C is still governed by the CST Act, indicating its necessity in some cases.