Dear Experts,
One of my client's executing works contract in Tamil Nadu and had been paying taxes u/s 5 of TNVAT Act,2006. Further, he has huge credit of WCT TDS under the erstwhile act which could be adjusted only upon liability arises at the time of filing the return under the TNVAT Act,2006 after exhausting the Input Tax Credit.
As per the GST Act, we can carry forward the credit which is reflecting in the june,2017 and transfer through filing TRAN-1 return, whereas TDS credit apart from excess ITC the said WCT TDS was not reflected.
However, the client was availed the legitimate credit through TRAN-1 which has been objected by the State authority and issued a notice to the client. Since, the Tamil Nadu Sales Tax authority has created and design the Website which was convenient for them on the contrary my client is suffering and the working capital is blocked.
Now, im decided to file a writ petition before the high court of madras to defend this issue.
Could any experts give opinion on this and also share if any citation on this.
Thanks in Advance.