Home|Discussion Forum|Communities|Professional Search|Law Dictionary|Bare Acts|Law Schools|State Bare Acts|Free Judgement Search|Law quotes
Articles  |    Humor    |    Law Digest
Bare acts search

Bare acts > Bihar Value Added Tax Rules, 2005 > Rule 12


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.





A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z



Quick Links     
Family LawsInsurance LawsEnvironmental lawTax LawFDI 
Company LawTelecommunication LawLabour LawsCentral RulesRBI 
Business & Commercial LawsConsumer lawsCorporate lawsCriminal lawsSEBI 
Intellectual Property lawMedia & Press lawsPharma & Medical lawsProperty lawFEMA 
Debt Recovery LawsAmendmentsProfessional lawBanking LawsLegal Links 




Privacy PolicyDisclaimer

Copyright @2010