31 July 2013
Dear sir, Please note that we are the manufacturers of T shirts.Recently we have purchased yarn from Tirupur Tamil nadu.They have charged VAT 5% and the same materialsent to our factory at Tirupur Tamil Nadu.The payment is being made at our Head office in Mumbai.In this transaction can we take the VAT of Tamil nadu as our input credit while filing the S.T.Return in Mumbai. Please reply back at the earleist.
31 July 2013
YES, IN TAMILNADU VAT RETURN, LOCAL PURCHASE OF 5% COMMODITIES IS ELIGIBLE FOR INPUT TAX CREDIT, THOUGH THE PAYMENT IS MADE IN MUMBAI AND EFILED IN MUMBAI. NO PROBLEM.
THE ONLY CONDITION, IT SHOULD BE A TAX INVOICE WITH TAMILNADU TIN OF SUPPLIER AND TIN NUMBER OF THE SELLER.
CAclubindia
