The Tamilnadu Government has made few important amendments in TNVAT Act with regard to reversal of Input Tax Credits in respect of Inter-state sales and Stock Transfers outside the State.
These amendments were carried out by enacting a Tamilnadu VAT (Fifth Amendment) Act, 2013 (Amendment Act) on 8th November 2013.
The effective date for these amendments is 11th November 2013.
The effect of these amendments are as follows :-
|Sl. No||Nature of Transaction||Position upto 11th Nov 2013||Position w.e.f 11th Nov 2013|
|1||Inter-state sales against C Form (Chargeable to tax @ 2% at present)||No reversal of ITC Required||Input Tax Credit allowed in excess of 3% of Tax|
|2||Stock Transfers outside the state (ie) Transfer outside the state otherwise than by sales.||ITC allowed in excess of 3%.||ITC allowed in excess of 5% of tax.|
The relevant Notifications are reproduced below :-