Input reversal on cst sales

saikrishna (Querist) 02 May 2014 This query is : Resolved
Sir, My Doubt is regarding new amendment in TN VAT Act input credit in excess of 3% of tax can be availed in case of CST Sales.
In case of purchase of gold VAT is applicable at 1% so input tax rate is 1%.Total Purchase is 10,00,000 and Input Credit is 10,00,000*1%=10,000. Total CST sales of gold are 10,00,000 at 1%.Then CST Payable is 10,000.
As Per the above provision input credit can be used in excess of 3 percent of tax in case of CST Sales. How much tax i need to pay as CST and how much Input credit is to be reversed either 1% or 3%?

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