Amendment status not verified — confirm the current text below against the official source.
Inserted by Act No.21 of 2011. [Act No.5 of 2005] 35 55[(i) transactions on which tax is paid or payable under sub-section (11) of section 4.] 56[(5-A) Notwithstanding anything contained in sub- section (5), the resident principal, who receives the goods purchased on his behalf by his agent, is eligible to claim input tax credit on such goods subject to the possession of a declaration in the Form, as may be prescribed.] (6) The input tax credit for transfer of taxable goods outside the State by any VAT dealer otherwise than by way of sale shall be allowed for the amount of tax 57[in excess of five percent (5%).] (7) Where any VAT dealer pays tax under clause (a) of sub-section (7) of section 4, the input tax credit shall be limited to 58[75%] of the related input tax. (8) Where goods purchased by a VAT dealer are partly for his business use and partly for other than his business use the amount of the input tax credit shall be limited to the extent of input tax that relates to the goods used in his business. (9) A Turnover Tax dealer or a casual trader shall not be entitled to claim input tax credit. (10) Any dealer covered by Explanations III & IV of clause (10) of section 2 shall not be eligible for input tax credit against or relatable to sale of un-serviceable goods or scrap, surplus, old, obsolete or discarded material or waste products whether by auction or otherwise.