Tamil Nadu Govt issues clarification on reversal of excess input tax credit u/s 19(20) of TNVAT Act; States that in order to give effect for reversal of undue enrichment of ITC, said section should be given effect by correlating the sale price of goods with the corresponding purchase price and if sale price is lesser than purchase price, then amount of ITC in excess of output tax should be reversed; Sec 19(20) will extend only to reversal of excess ITC and if there is a case of selling at a price abnormally below prevailing market price, provisions of Sec 24 should be invoked by Assessing Authorities

Circular No. 29/2015 dated August 11, 2015
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