Vidhi Codex

section 13

Credit for input tax

The Andhra Pradesh Value Added Sales Tax Act, 2003
Tax200387 sections5 chapters
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Chapter II INCIDENCE, LEVY AND CALCULATION OF TAX

Statutory text
  1. (1) Subject to the conditions if any, prescribed, an input tax credit shall be allowed to the VAT dealer for the tax charged in respect of all purchases of taxable goods, made by that dealer during the tax period, if such goods are for use in the business of the VAT dealer. No input tax credit shall be allowed in respect of the tax paid on the purchase of goods specified in Schedule VI.
  2. (2) Subject to the conditions if any, prescribed, input tax credit shall be allowed to a VAT dealer on registering as VAT dealer if any input tax is paid or payable in respect of all purchases of taxable goods, made prior to his registration for VAT where such goods are for use in the business as VAT dealer, provided the goods are in stock on the date of registration and such purchase occurred not more than three months prior to the effective date of registration.
  3. (3) A VAT dealer shall be entitled to claim input tax credit.-
    • (a) under sub-section (1), on the date the goods are received by him, provided he is in possession of a tax invoice;
    • (b) under sub-section (2), on the date of registration, provided he is in possession of documentary evidence therefor.
  4. (4) A VAT dealer shall not be entitled to input tax credit in respect of the purchases of such taxable goods as may be notified from time to time.
  5. (5) No input tax credit shall be allowed on the following:-
    • (a) transfer of goods on consignment basis or to branches of the VAT dealer outside the state otherwise than by way of sale;
    • (b) service or skill component in a works contract;
    • (c) transfer of a business as a whole;
    • (d) sales of exempted goods except when such goods are sold in the course of export or exported outside the territory of India.
  6. (6) 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.
  7. (7) A Turnover Tax dealer or a casual trader shall not be entitled to claim input tax credit.

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