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TMI BlogTNVAT ACT 2006- SECTION 41X X X X Extracts X X X X X X X X Extracts X X X X ..... TNVAT ACT 2006- SECTION 41 X X X X Extracts X X X X X X X X Extracts X X X X ..... mnt and forfeited. To this extent it is clear. But in section 41, it continues as " the sum so collected shall be remitted to the Governemnt and forfeited, AFTER DEDUCTING THE ELIGIBLE INPUT TAX CREDIT CLAIM, IF ANY, ON THE CORRESPONDING PURCHASES. My query is if this is adopted as such, every dealer need to have pay tax every month, since the word eligible input tax on the corresponding purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hases means Tax on sale less purchase value results in tax on value addition.. On the other hand , if the dealer was permitted to adjust the input tax credit on his entire sales, then he should not be permitted to carry over the Input tax credit to the next year as contemplated u/s 3(1)(b) of the Act. Please clarify. Further clarification in question if any needed, feel free to contact vbnctd@gmai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l.com Reply By YAGAY AND SUN: The Reply: Dear Badrinath, It is settled legal position that under Indirect Taxation matters, if any tax even if inadvertently is collected needs to be deposited with the exchequer. Threshold limit generally verdicts that dealer is exempted to collect the tax on sales. Hence, no input tax credit would be available. If a dealer availing the benefit of threshold limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t collects the output VAT then it is statutory liability to pay it off.
Regards,
YAGAY and SUN
(Management, Business and Indirect Tax Consultants) X X X X Extracts X X X X X X X X Extracts X X X X
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