17 December 2013
I'm an imported Coal supplier with Business established in Chennai, Tamilnadu. We buy Coal from various importers on VAT basis. We do local sales as well as CST sales but majority (almost 90%) of our sales is CST sales. In our case we buy cargo by paying VAT@5% and sell the same by charging CST@2% to our clients and we have been carrying forward the excess difference of 3% to next Month. This practise has incurred a lot of ITC. But now there is an amendment in TN VAT rules which explains from November ITC can be carried forward only if appropriate inventories is reported. 1) Now I was attempting to file my November Month return. I have an ITC of Approx 11 Lacks but stock as per my ERP is only 300 Tons, which explains that value of stock is just 1400000 lakh Rupees only on which i can claim an ITC of 70000 Rupees only. Can any one help me in resolving this situation . 2) Secondly it seems there is another amendment where the differential VAT should not be carried (as like before) forward instead that should be reversed back in that month return. So my question is, is this amendment true?
I see there are so many experts over here. I sincerely and humbly request somebody to help me over here.
17 December 2013
This is a Common feature in all VAT Acts in India.What you can do at the moment is file a form P(refund form),for each year separately,along with return copies and a letter to the vat officer.If he accepts ,OK if he does not,get a an endorsement from him rejecting your request. On that endorsement you can go to appeals and get the refund order.....mjk
17 December 2013
I thank you from the bottom of my heart Mr. Krishnamurthy. But my query is still unresolved. I'm now not concerned about refund of ITC. I'm concerned Annexure-V in TN VAT & New VAT rule which explains that we cannot carry forward the difference of VAT. If you could help me with that i will be very delighted.
CAclubindia
