TNVAT NOTIFICATIONS AND G.O.'S RELATED TO EOU

இந்த கட்டுரை நமக்காக வழங்கியது  திரு .நஜ்முதீன் கோவை அவர்கள் 

The author of this article is Mr.K.M.Najmudheen, a Sr.VAT Practitioner and one of the well versed and sound knowledge person in TNVAT Act.  He pleased to furnish here below the EOU Matters and related Government Orders and notifications ONLY for the welfare of VAT Practitioners.

100% EOU:

“Exemption in respect of the tax payable by any dealer on the sale of

of [raw materials, packing materials and consumable goods] to the

registered 100% Export Oriented Units in this State and units located                                                           in Chennai Export Processing Zone”

(G.O Ms.No.528 CT&RE dated 21.11.1997 – Notification No. II(1)/CTRE /100/97 Gazette dated   17/12/1997)

FURTHER NOTES:

    1) The expression “raw materials, packing materials and consumable goods”

    is substituted for the expression “raw materials”

    (G.O.No.Ms.104 CT&RE dated 1/4/1998-Notification No. II(1)/CTRE/43(a-3)/98-Gazette dated

    1/4//1998 effect from 1/4/1998

    2)  “and units located in the Chennai Export Processing Zone” shall be omitted.  

G.O.Ms.No. 75 CT (B2) dated 28/6/2005 – Notification No.II(1CT/26/(b-2)/2005 – Gazette dated      28/6/2005 effect from 28/6/2005

3)  According to Section 88(3)(1) of TNAT Act 2006, the notifications issued under the TNGST Act 1959 continuing in force even under TNVAT Act until they are replaced or amended.

4)  The Hon’ble Commissioner of Commercial taxes Chennai-5 much pleased to clarify in VCC No.116/2007 Lr No. 4631/2007 dated 12.3.2007 that asper Section 88(3)(1) exemption granted under GO.Ms. 104/98 continues to be inforce even after 31/12/2006.

5)  Several clarifications are issued in respect to 100% EOU under VCC Nos. 39, 185, 270, 352, 487, 1085, 1129 and 1281.

6)  Even though the VCC clarifications issued are struck down by the Hon’ble High Court of Madras, cases Reported in 35 VST 103, 52 VST 377, 15 TNCTJ 235 and 17 TNCTJ 45, the issued clarifications in VCC can be taken for as reference to get an information and idea.

INPUT TAX CREDIT (ITC)

According to section 19(5)(a) of TNVAT Act 2006, no ITC shall be allowed in respect of sale goods exempted under section 15 (i.e.  sale to 100% EOU is exempt by notification. Hence No ITC eligible)