Input Tax Credit

(1) Input Tax Credit shall be allowed only to a registered dealer, and for the purpose of calculating the net tax payable by a registered dealer for any tax period after being registered, an input tax credit as determined under the provisions of this Act shall be allowed to such registered dealer for the tax paid or payable in respect of all taxable sales other than sale of goods specified in Schedule in or any other sales as may be prescribed: Provided that no input tax credit shall be allowed in respect of the taxable purchases on which the tax is paid or payable under sub-section(l0) of Section 3 : Provided further that notwithstanding anything contained in sub-section (1) or its proviso above, input tax credit in respect of purchases on which tax is paid or payable under sub-section (10) of Section3, shall be allowed in the following circumstances:-- Provided further that, in no case the amount of input tax credit or refund on any purchase of goods shall exceed the amount of tax, in respect of the same goods actually paid under this act or any earlier law, into the Government treasury; (a) purchase from a person who sells agriculture or horticulture produce grown by him or grown on any land in which he has an interest whether as a owner, usurfructuary mortgagee, tenant or otherwise, or who sells poultry or dairy products from fowls or animals kept by him, and such persons are, in respect of such goods, not treated as a dealer under the provisions of sub- section (11) of Section 2 of this Act; or (b) purchase of any goods as may be notified by the State Government for this purpose, subject to such conditions and restrictions as may be specified in said notification. (2) The input tax credit to which the registered dealer is entitled shall be the amount of tax paid by the registered dealer to the seller, on his turnover of purchases made during the tax period, in- tended to be used for the purposes and subject to the conditions as specified in this Section and calculated in such manner as may be prescribed. (3) Input tax credit shall be allowed for the goods purchased within the State of Uttarakhand, from a registered dealer holding a valid certificate of registration under Section 15 or Section 16, for the purpose of- , (a) sale in Uttarancha1; or (b) sale in the course of inter-state trade and commerce; or (c) sale in the course of export out of the territory of India; or (d) use as raw material in manufacturing or processing of goods (other than those specified in Schedule I or Schedule Ill) and containers or other packing materials used for packing of such manufactured goods, for sale or resale within the State or in the course of inter -state trade or commerce; (e) use as raw material in manufacturing or processing of any goods (other than those specified in Schedule ill) and containers and other packing materials used for packing of such manufactured goods, for sale in the course of export of goods out of the territory of India: Provided that with reference to clause (d) above, in case such manufactured goods are dispatched outside the State other than by way of sale, a partial amount of input tax credit shall be allowed in respect of tax paid in excess of 3 percent on the raw materials used directly in the manufacture of such goods : Provided further that partial input tax credit shall be allowed in respect of tax paid in excess of four percent on petroleum products used as fuel (other than Petrol. Aviation Turbine Fuel, Natural Gas and Diesel) and other fuels used in production of taxable goods or captive power, but excluding fuel when used as fuel in motor vehicles.