Saawariya & Co.

R.24 Claim of amount of input tax credit U.P. VAT RULES

R.24 Claim of amount of input tax credit-

Credit of amount of input tax, in respect of goods in respect of which dealer is entitled for claiming input tax credit, shall be claimed as under: -

(a) In respect of capital goods required for use in manufacture, in three successive annual installments of equal amount and shall be claimed in the tax return of the first tax period of the assessment year. The first such installment shall be claimed in the tax return of first tax period of the assessment year succeeding the assessment year in which capital goods liable to input tax credit, has been purchased and subsequent installment shall be claimed in first tax period of subsequent assessment year;

Provided where manufactured goods are exempt under the Act and such manufactured goods are disposed of in different modes, only partial amount of such annual installments shall be claimed and be allowed to the extent it is related to or proportionate to sale in the course of export out of the territory of India.

(b) in respect of goods purchased before the date of the commencement of the Act and held in opening stock on the date of the commencement of the Act, in six successive monthly or quarterly installments, as the case may be, of equal amount and first such installment shall be claimed in the tax return of the tax period which starts after expiry of period of four months commencing on the date of the commencement of the Act and subsequent installment shall be claimed in successive return of tax period, monthly or quarterly, as the case may be;

(c) in a case in which a dealer becomes liable to pay tax on any date after the date of the commencement of the Act, in respect of goods held in opening stock on the date on which a dealer becomes liable to pay tax, in six successive monthly or quarterly installments, as the case may be, of equal amount and first such installment shall be claimed in the tax return of the tax period which starts after expiry of period of fourmonths commencing from the month in which registration certificate is issued to such dealer and subsequent installment shall be claimed in successive return of tax period, monthly or quarterly, as the case may be;

(d) in respect of goods held in closing stock on the last day of period of composition under section 6, in the tax return of the period in which the day following the last day of the period under composition falls; and

(e) in all other cases in the tax return of the tax period in which goods have been purchased.

Explanation:

(1) For the purpose of clauses (b), (c) and (d) of this rule goods held in stock includes goods, used in manufacture or processing of finished goods or semi-finished goods in the process of manufacture and held in stock

(2) For the purpose of clauses (b) and (c) of this rule if fourth month expires in a tax period as defined under Rule 44(1)(ii) the first installment shall be claimed in the tax return of the tax period in which fourth month expires.

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