Vat input reverse on stock trf. (tn state)

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In the state of Tamilnadu, what is the rule of input credit reversal? Suppose in the partcular month, total local purchases made for Rs. 1000/- plus tax Rs. 50/- ( @ 5%). It means a dealer is eligible input credit for Rs. 50/- if it sells within state. If it sells locally (Rs. 20%), centrally (25%) & also sending to branches (55%) out of state against F form then how much will be input credit. I know that I am eligible input credit on sales (Locally & Centrally)  but not eligible input credit on stock trf. out. My question is that what is the % of tax (2% / 3% / 4% / 5% or else), we'll not get input credit or we'll have to reverse input credit if input credit taken in earlier month. Pls. reply with rule.

Replies (2)

there are steps appliable for input tax caluslations.

1 step take the value of Input credit - decire the local %

for expample 5% tax purchases

for local sales 100% applicable

for others it will applicable as below formula

to arrive apportion value =INput tax X cst sales / stock transfer / total turnover

from the apportion value X 3 i.e ( local tax 5% - 2 %cst) / 5 ( i.e Local Tax) the eligible value shall arrived.

if more clarifications mail to prass_raj @ rediffmail.com 

 

First of all thanks for your reply Mr. Prakash.

Are you sure you have mentioned about Tamilnadu vat and I aksed about the % of reversal of input credit?

Pls. reply with act/circular/notification

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