Amendment status not verified — confirm the current text below against the official source.
Inputtaxcredit (l) Subjectlo the provisions ofthis Act, an input tax credit as provided iD this scctjon shallbe clailned by a rcgistered dcalcr, subject to such conditions atd rcstrjctjons as may be prcscribed on sale ofgoods in the circumstances specified below:- (a) when a rcgistered dealer pulch ases any inputwithin the State ftont anothersuch dealer afterpaying him the tax as specified undersection 12, he shallclaim creditot the said input tax ir the nrannerprescdbed ifthe goods arc sold withi the State or in the course oflntei- State taade and connrerce; (b) when a registered dealer- (i) purchases any inputwjthin the State lrom another such dealer allerpayinghim the tax undersection 12, or . (ii) putchaseq any inputandpays tax on such pur-chase un de:- section 10 oftl.le Actand consumcssuch goods inthe manufacture ofany goods mentioned ilt Schedules lltoV under section I 2, he shall clajtn credit ofth e said input tax in the manncr prescribed if the goods so manufactuled aresold withjn the Stateorin the course oflnter- Staie lraJc arrd cntrrne'cei (c) rvhcn a registeled dealerpurchases any capitalgoods within the State liom another such dealeralterpayinghimthetaxasspeciliedundersectioul2,orusesslrchgoodsiithe rranufacture ofany goods mentioned in Schedules II loVundersectjon l2 andsells the manufactured goods within the State or in the cou6e oflnter-State trade or commcrLrc or otherwise, he shallclaim and be allowed, in such lnanneras tnay be prescribed, creditof theamountofsuch tax; (d) when aregistered dealcrholds anystock on the appointed day, such goods as havebeen purlhased byhim on orafter 1'rAprii,2004 andwhich have suffered the incidenceoftax under thc Sikkirn Sales Tax Act, 1983, and (i) sells sucir goods wilhii the State or in the cource oflnter-State trade ald commerce. or (ii) consurncs such goods in the manulactwe ofany goods nrentioned in Schedules Il to V ofsection 12 and the goods so manulbctured are sold within the State or in the course ol Incr'Slalc lndc ancl co.nl]]erce. he shallclairl creditofthesaid ta\ in th e rnanner prescribed; E E E a a tg (e) when aregistered dealerpurchascs any inpul wilhio lhe SLate liom another such deeler atierpaying him ihe taxas specifle'l undersection L2 at arate highcrlllan4 percentlrm and tlarsfers such goods ol goods miltlufacu ed iiom such goods to another dealer olrLside theSratc.hesh.Jibeallowedcredilofsuchtaxlnexcessoi4pel,cenlum.inlhenlatrnct. Prescribed; Provided that ifihe claim tbi input tax credit Lrnder claLLses (a)' (b)' (o)' (d) or (e)' any month exceecls the output lax tbr lhe same morth, such excess shall be caded lbrward for adjustment againsl the oLrlPul tax of subsealllent months not bc ing a month laler lhan two years after lhe close of the vear during which such excess had ansen. (2) Any amounl ofinputtax remailing unadjusted after two yea$ itiet the close olthe yeiu duliug which such excess had ar]sell shall be rcturded to the dealer subject to the provisions olthis Provided also dlat input tzl\ credjt in rcspect ofcapital goods shall bc allowed in the nanrff and oler sLrch perio.l, ootexceeding 36 (thilly six) monlhs liom thedalc ol theilacquisiuon Provided further thal no cre.lit oi iiput tax sllall be allowed in respcct ofcapiLal assets purchased ot' acquired before lhe comlllcncemenl ofthis Act' (3) Notwithstanding anYthing corlllined in sub-scctiorr lI)' wherc 'L rctsistcLEd deder purchases any input in the circumstances stated in clauses (a) or (b) ot'sub-section ( I ) and'- (i) dispatches such goods or the goods namrlirctured by coosuming such goods rc a co xllission agent iegistel eci under lhe Ac! or translers such goo'ls Lo its branch or'head olfice inside the State ol Sikkm for sale as fie case may be; or (ii) supplies such goo'ls ln the couNe ofexeculion ofa wolks conlract to Inothcr-such dcaler lo whoinhchas leL ou! a sub-contruct' lbr use in theexcctLtion thereoll the inPLlt lax credh on the sale or supply' as the case may be' oisuch goo'ls shall be ciaimed by theregistered dealerselling lhegoods on comnission orusirg the goods supplied in the execulionofsub.contract,asthecasemaybe,inaccoldancewilhtheploviSionsofsLlb section (l), in such mlllncr as may be prcscribed' (4) No iopu! tax credit undcr sub-sectjon (l) shxll be ciaime':l or be allowed to a registered deaier- (a) in respectQfgoocls specilied underschedule I or such goods as may be notilled;or 20 (b) in respect ol'inputs purchascd hy hint fi-om anothersLlch dealer.or manufactured hy him and the rightwhelein to use is tmnsfeted to anotherdealbr: or (c) in rcspccls of inputs purchrlsed from a lcgistreled dealer pennifted to pay tir' under pl ovlsions ofsection 16 and section 17:or (d) in respect ofinputs coDsurned either for the manufacturc ofgoods specified in Sche.lule I olsection l2: ot (e) in rcspcct ofgoods used tbr selfconsurnption or as gitt. in case thc inputs or goods arc used pafiially f(n.the purpose specified in clause (d) or (e) o1'sub-section (4), thcclaim lortheinput tax creditshallstand reduccdtothe extcntthey ile \O U\(J, No dealer shall clairn input tax crcdit in rcspectofjnputs purchased, unless he is in possessron ofan originalcopy oftlte ta\ invoice, signed tutd issued by the selling register ed dealercontailing lhe prcscribed patticurlars of sale. Ilthcorigiual tax invoicc is iost, input l&\ crcdit shall be allowed only on rhebasis ofaduplicate copy ofthe odginal tax iovoicein thelblmand man ner prescdbed. 22, Exports to be zero-rated (1) A sale specifled undcr section 5 ofthe CentralAct, by a ciealeroran export odentecl unit, sha]l be zero-rated and there shallbe no tax payable on the tumovet.ofsuch sale and the person expoting the goods.shall be entitled in the manner prescibed to a credit ofinput lax pai.lt- (a) on the purchasd ofthe goods sold in the course ofexport. or (b) on the purchase ofinputs and capital goods which have been used for the manufacture of goods.old in rhe c,..ru,ie olcrport: Provided that the input tar credit on accoul.lt ofcapital goods shall be aliowed ooly to the extcilt and in thc mannerprcscdbed. ExplanatioD - For d1e purpose of this section, all sale ofinputs made to Lhe dcalers in a Special Eco omic Zone ar notified by the Cenfal Government under scclion 5 ofthe Forergn Tr.ade Regulation Act, 19gg shall also be zero rated. (2) Nol withsranding anythingcontained ill sub-section (l ), sale ofgoods made to foleign.liplomats or mi((ion. "hall r.l bc cxetnpr: Prcvided that thelax paid by such fo.eign didomats orNissions or, theirporchases willbe refunded in full in the manner prescdbed. (.1) (6) (s) 2t -"- 23, Bulden ofproof Where any assessee clain'is - (a) thal any receipt or disPatch ofgoods by him is otherwise than by way ofputchase or salc o1' such goods by him: (b) that a,ry sum ot' money received or receivable or paid or payable by iim by any mea,'ls inclllding adjustmerlt against a debt is not in the cou$e ofbusiness and where in the cou$e ofbusiress such sumis not valuable consideution for any sale or purchase of goods ellected by him in drc year in which the said sum was teceived otreceivable orpaid or payable; (c) that any purchase or sale olgoods by him is notliable totaxby rcason ofsuchpurchase orsale being outsidethe State or in thecourse oflnter_State tmde and comnetce or in the cour-se ol the impoft ofLhe goods into, or the expofl of the goods out of, Ihe teritory ollndia; (d) that any purchase or sale ofgoods etIected by him is exempt lrom lax or leviable lo tax at a par ticular raie; (e) that any purchase or sale ofgoods effected by him is not taxable because olretur-n ofsuch goodsi (0 that he is entitled to any deduction ftom grcss tumover or any deduction olinpul tax lrom the IJ1 calculated on Lhe )dle olgoodsl (g) that in case of tax payable on works contract u nder S ection 13, he is entitled to a ded uction in rcspect of iabour and like charges or non t:Lxable componenls liom the valuable consideration orbills for the execuition ofthe co[t] act; O) thalanypa cular sum has been paid by him as tax, interest or penalty under-this Act; (i) that any goods, books of account and document discovered at his business premises or al a y other place or in any goods ca(ier or other vehicle over which he has coDtloi at lhe time of suchdiscovery, do notrelate to lis business;or 0) that any relief under this Acl or the les made thereunder is admjssible to him, . the burden ofso proving shallbe on him.