TN govt- ITC reversal for CST2% sales , VAT + CST

[venkat eswaran]

Dear Sir,

TN VAT  for CST sales 2 percent    ITC reversal 3 percent  is applicable to Nov13 return ?

Pl provide the ITC reversal amount for the following exmaple.

Total ITC taken Rs. 5000/-

Total interstate  CST 2 percent sales [against C form]  is Rs. 75000/- & Total sales is Rs. 100000/-

How much ITC reversal i have to done. pl give calculation with the above example.

Thanks,

Venkat

Posts / Replies

[Nagarajan Kannan]

 

Hi

I attach a sample calculation for your reference. Anyway you may discuss the same with your

ST consultant before you prepare your return.

		ILLUSTRATION
		INPUT TAX		INPUT TAX	PURCHASE	VALUE
Original rate	5 percent	20000	14.50 percent	29000	5 percent	400000
Reversal rate	3 percent	12000	3 percent	6000	14.50 percent	200000
Balance	2 percent	8000	11.50 percent	23000
		CST Sales 2 percent		100000
		Proportionate Reversal for CST Sales 2 percent
		Reversal out of 5 percent -1	1200	(12000*CST Sales/Total Sales)
		Reversal out of 14.5 percent -2	600	(6000*CST Sales/Total Sales)
		TOTAL	1800
		TOTAL TURNOVER	Rs	output VAT/CST
		VAT 5 percent Sales	600000	30000
		VAT 14.5 percent Sales	300000	43500
		CST 2 percent Sales	100000	2000
		TOTAL	1000000	75500
		TOTAL TAX PAYABLE
		VAT	CST
	OUTPUT TAX	73500	2000
	INPUT TAX	49000	0
	Less: To be reversed-CST sales	1800
	Balance Input tax available	47200
	NET OUTPUT VAT PAYABLE	26300
	CST PAYABLE	2000

 

[venkat eswaran]

Dear Sir,

Thank u very much for ur reply with example.  Sir i have one doubt, CST sales includes CST amount also or taxable Turnover? & Total Sales means  included VAT +CST or Taxable Turnover?

Pl give ur valuable feeback.

Thanks

Venkat

 

[Nagarajan Kannan]

Hi

Total Sales excludes VAT and CST. It does not include

VAT or CST amount.

Regards

Kannan

 

[Thiru sambandam]

Hi,

Mr.Venkat

Apply below formula,

Sales Effected with C form

ITC Claimed * CST Sales 2 percent                  3

*

Total Sales (VAT+CST)                          Rate of Tax

[venkat eswaran]

Thiru Sambandam sir,

 

Thanks for your reply and formula, i have one query CST sales includes CST 2 percent amount? Total sales includes VAT + CST amount?

I cheqcked with our range AC he said it is inclusive CST  sales includes CST 2 percent and Total sales included CST and VAT amount.

Kindly clarify

Venkat

 

 

[Ravikumar muthusamy]

it is absolutely sales amt only without tax amt