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" Clause (c) under Section 19(5) of TNVAT Act, 2006 will henceforth be withdrawn to enable the dealers to claim Input Tax Credit on the inter-State sale of goods without ‘C’ form.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

Input Tax Credit reversal removed, allowing claim on inter state sales without C form, easing dealer compliance burden.
Withdrawal of the proviso imposing Input Tax Credit reversal on inter state sales without Form C allows dealers to claim input tax credit on such sales without executing Form C; the Form C requirement under the Central Sales Tax regime remains a distinct obligation.