12.
Input Tax Credit.- (1) Claims in respect of input
tax credit shall be made by a registered dealer in his return
under section 24.
(2) The total amount of input tax credit
to which a dealer is entitled during a quarter shall be the
amount arrived at after applying the following Formula: ITC
= O + C + I - R where
(a) ITC = The total amount of input tax
credit to which the dealer is entitled during the quarter.
(b) O = The tax paid, under the earlier
law, on opening stock of such goods as had been purchased
on or after 01-04-2004 but before 31-03-2005.
(c) C = The thirty-sixth part of the tax
paid in respect of capital goods purchased on or after 01-04-2005.
(d) I = The tax paid on inputs purchased
during the quarter, charged either in the bill or invoice
or through a debit note issued to the purchasing dealer; and
(e) R = The amount of reverse credit, if
any, incurred by the dealer during the quarter and computed
in accordance with the provisions of rule 14 and rule 15.
Provided that in case the
aggregate of the reverse credit computed in respect of a quarter
exceeds the input tax paid on inputs purchased during the
quarter such excess shall be added to the output tax of the
concerned quarter.
(3) For the purposes of this rule, no input
tax credit shall be claimed in respect of inputs purchased
or acquired from any place outside the State of Bihar.
(4) Save in respect of any claim for input
tax credit arising under section 17, a claim for refund of
any unadjusted input tax shall only be made and allowed in
the twenty-fifth month after the quarter in which such claim
for unadjusted input tax had arisen. In case a claim for refund
of input tax arises under section 17 it shall first be applied
towards adjustment from the liability under the Act or the
Central Sales Tax Act, 1956. Only the amount, if any, remaining
after such adjustment shall be refunded as per the provisions
of section 68 or section 69, as the case may be.
(5) --- (a) In case of goods purchased
from inside the State and transferred either to consignment
agent or branch or head office or to a sub contractor, the
input tax credit shall be claimed by the transferee on the
basis of the declaration in Form D-IV issued by the transferor.
In such cases the value shown in the declaration in Form D-IV
shall be deemed to be the value of purchase by the transferee.
(b) No input tax credit shall be available
to a registered dealer for tax paid or payable at the time
of purchase of goods if such goods are not sold because of
any theft, loss or destruction for any reason, including natural
calamity, and if a dealer has already taken any input tax
credit against purchase of such goods the dealer shall incur
a reverse tax credit at the end of the quarter in which such
goods are stolen, lost or destroyed.
(c) No input tax credit shall be claimed
by a registered dealer in respect of tax paid at the time
of purchase unless he furnishes the duly filled in statement
in Form RT-II within the time and in the manner prescribed.
(6) The tax paid on the purchase of the
following goods shall not qualify for input tax credit, if
the same have been used as capital goods:
(a) Civil structure and immovable goods
or properties;
(b) Vehicles of all types;
(c) Office equipment;
(d) Furniture, fixture including electrical
fixtures and fittings. |
