Input Vat Credit in Tamil Nadu

we were also facing the same problems. Our ITC was running in Lakhs of Rupees and we were applying for Refund. but getting refund from department is not so easy. it takes time and cost.

You can do one thing. You identify few dealers in tamilnadu whose output liabilty is more than their input credit. You make sale to those dealer and that dealer will raise CST invoice to ultimate buyer.

In this way u can adjust your itc immediately . the middle man will return the ITC amount . you can give some x amount for all this adjustment.

Balance Input credit available as per TN VAT act after adjusting input tax reversal (for inter state sales made to un-registered dealer) can be adjusted against CST due. There is a provision in the TV VAT efiling.

Agree with obeid

Input VAT Credit can be Adjust With OutPut CST.

Since The Goverment is Same.

dear all,

 As per Section 19(2)  of TNVAT Act, Input tax credit shall be allowed to be adjusted.  That is, it can be adjusted against sale in the course of interstate trade falling under sub-section (1) of section (8) of the CST Act, 1956.

regards,