TNVAT-Clarification Circular issued regarding Annexure V to Form I

The Government of Tamilnadu had amended the Form I by introducing Annexure – V in respect of ITC Claimed and carried forward. In view of the various representations received from various trade & industries, the Commissioner of Commercial Taxes has issued certain clarifications with regard to filing of Form I along with Form I.

The clarifications provided by the Circular No 12/2013 dtd 3/12/2013 are as follows :-

1) Annexure-V needs to be filed only in cases where Input Tax Credit (ITC) is carried forwarded.

2) Since the amendment is effective from 1st November 2013, Annexure V shall be filed only in respect of monthly returns for November 2013.  The return in respect of October 2013 need not be filed along with Annexure V

3) Where in some business concerns, many number of goods are being traded, it is not necessary to provide details of all the goods. Those goods shall be grouped code wise and the relevant particulars shall be provided.  Hence there will be only one value for one rate of tax.

4) Quantitative details of the stock need not be provided

5) In certain specific circumstances, ITC would be carried forward without proportionate stock of goods.In such cases, NIL Stock filed by the dealer should be accepted.

The relevant circular is reproduced below :-

[gview file=””]

12 thoughts on “TNVAT-Clarification Circular issued regarding Annexure V to Form I”

  1. Please clarify stock detailed required to be given is realting to ITC carry forward or actual closing stock in the month end ?

  2. Madam,

    Annexure V should contain the details of the Input Credit brought forward from previous month and also carried forward to next month if any. These details needs to be provided commodity code wise. It need not necessarily represent the actual closing stock. In the latest clarification issued by the Commercial taxes department, they have also clarified that there might be instances where there will not be any closing stock and still there will be tax credit carried forward. Hence i am of the view that the Annexure V does not necessarily/ prima facie mean the actual closing stock.

  3. Sir,
    I am dealing more than 5 commodities. I have stock in all items. How do I fill colomn 2 and 7 in annexure V?

  4. If u have input tax credit in respect of those items, which needs to be carried forward, then u need to provide these details

  5. Dear Sir,
    Greetings. Under TNVAT sale of Used Cars attracts vat tax @ 5% subject to the dealer is not eligible for input tax credit as per the NOTIFICATION-VI. G.O. Ms. No. 78, No. II(1)/CTR/12(R-25)/2011. Commercial Taxes and Registration (B2), 11th July 2011,
    Here, the meaning of the condition “the dealer shall not be eligible to avail input tax credit” is not clear.It means whether the dealer can not use the ITC balance to pay the output tax on sale of vehicle ?
    Please clarify the requirements of the condition with Dept.circular ,if any.
    -Thanks &regards.

  6. Dear Sir,

    The said notification reads as under (with ref to used cars):-
    “1) 22. Used Cars/Motor vehicles on value addition with out input tax credit”

    In our opinion, we can interpret the same as follows :-
    1) The product sold should be used car.
    2) It should have been purchased from a Registered dealer with payment of relevant VAT.
    3) The same is sold by the buyer with a profit margin (kindly check the words “on value addition”)

    Any different interpretations, please share.

  7. Dear Sir,

    Thanks for your kind reply. I gather from your clarification as below:
    1) VAT tax on sale of used car arises for registered dealers not to individuals
    2) VAT tax payable on sale of used car can not be adjusted to credit balance in ITC a/c
    3) VAT tax payable on sale of used car has to be paid by cash under challan

    Sir, please confirm I am right.

  8. Dear Mr. Shekar,

    1) Yes.
    2) Partially correct. The ITC paid on purchase of used cars only cannot be adjusted. It can be adjusted against other ITC
    3) No. Refer point 2 above. Effectively, the tax will be paid on the value added portion (ie.,) Profit Margin.

  9. Dear Sir,
    Namaste. Thanks for ur kind reply.I beg to differ with you on one point.The Notification states that the reduction in vat rate is applicable to Dealers other than dealer in automobiles. As such, while buying a new car , such dealer is not eligible for ITC as per vat rules. When he sells it as used car, he can discharge output tax at reduced rate@5%. Since concession is given in vat tax, it is perhaps prohibited to use his business ITC balance to pay this output tax but to be paid by cash. This may be the intention of law. Please share your views. -Regards

  10. Dear Sir,
    I’m a manufacturer. The purchase of raw material includes Interstate purchase @ CST-2% and Local purchase (within Tamilnadu) as VAT-5% for same product. My finished product is sold under local sales @ VAT-5%. Now the closing stock includes value of raw material and finished product. Please help me regarding filing of Annexture – V.Thank you in advance.

  11. Dear Sir,

    We are trading Exempted goods \”Asafoetida\”

    In the new portal there is no provision/Annexure for \”Exempted goods sold to Un-registered dealer,

    Please advise me how to fill the same.


Comments are closed.