TNVAT ACT 2006- SECTION 41

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..... Under Tamilnadu VAT, sec41- emphasis on forfeiture of tax collected. Here the threshold limit for taxation is 10 lakhs, If the dealer had less than 10lakhs turnover then the sum so collected shall be remitted to the Governemnt 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 .....

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..... 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 purchases 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, th .....

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..... en 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 [email protected] - 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 need .....

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..... s 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 limit collects the output VAT then it is statutory liability to pay it off. Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants) - TNVAT ACT 2006 .....

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..... - SECTION 41 - Query Started By: - BADRINATH VINAYAKARAO Dated:- 27-11-2015 Value Added Tax - VAT-CST - Got 1 Reply - VAT and Sales Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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