TaxTMI 
TaxTMI 
Input Tax credit on purchased Carpets purchase from registered dealer against Tax Invoices as per provision of UPVAT act and latter on such goods exempted by the U.P government through notification dated 13.05.2008. In that case I.T.C. can be allow under sub section 7 of Section 13 of the act ?
Input Tax credit
29 Sep 2013 
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Input tax credit availability depends on post-purchase taxability of goods under Section 13(7) of VAT.
Whether input tax credit on carpets purchased from a registered dealer against tax invoices remains claimable when those goods are later exempt; applicability turns on the taxability of the goods upon disposal. Section 13(7) permits credit of tax paid on inputs provided the sale or disposal of the goods is not exempt, so credit depends on whether subsequent disposals are taxable. (AI Summary)
Whether input tax credit on carpets purchased from a registered dealer against tax invoices remains claimable when those goods are later exempt; applicability turns on the taxability of the goods upon disposal. Section 13(7) permits credit of tax paid on inputs provided the sale or disposal of the goods is not exempt, so credit depends on whether subsequent disposals are taxable. (AI Summary)