TN VAT Filling the Monthly return for dealer having TO below exemption limit

[N Chidambaram]

Please let me know how to show the following turnover of a dealer registered under TN VAT Act in the monthly return form.

 Local sales 300000  His turnover for the entire financial year is less than 5 lakhs

Can the dealer claim input credit for local purchases with VAT

Whether the input credit if allowed can be carried over to next year.

The dealer has local purchases without VAT also for Rs. 50000/-

Whether this can be shown on both input side and out put side so that the tax effect will be nil or 

what is the proper procedure for this 

Thanks & Regards

N. Chidambaram

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Input tax credit eligibility for dealers below exemption limit and reporting obligations in VAT monthly returns.
A registered dealer under the TN VAT Act with annual turnover below the exemption threshold seeks guidance on reporting local sales in the monthly return, entitlement to input tax credit for purchases on which VAT was paid, whether such input credit can be carried forward, and the proper accounting treatment for local purchases made without VAT including whether they may be entered on both input and output sides to neutralise tax effect.