TaxTMI 
TaxTMI 
Tax credit Rules 6&7
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (b) sales which are not liable to tax under section 7 of this Act. Explanation: Sales which are not liable to tax under section 7 of this Act involve exports from Delhi whether to other States or Union territories or to foreign countries.] (2) No tax credit shall be allowed - (a) in the case of the purchase of goods for goods purchased from a person who is not a registered dealer; (b) for the purchase of non-creditable goods; (c) for the purchase of goods which are to be incorporated into the structure of a building owned or occupied....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he amount of the tax credit shall be reduced proportionately. (5) The method used by a dealer to determine the extent to which the goods are used in the manner specified in sub-section (4) of this section, shall be fair and reasonable in the circumstances: Provided that the Commissioner may - (a) after giving reasons in writing, reject the method adopted by the dealer and calculate the amount of tax credit; and (b) prescribe methods for calculating the amount of tax credit or the amount of any adjustment or reduction of a tax credit in certain instances. Explanation: A person may object in th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... engaged in doing job work or labour work and is not engaged in the business of manufacturing of goods for sale by him and incidental to the business of job work or labour work, obtains any waste or scrap goods which are sold by him.] (8) The tax credit may be claimed by a dealer only if he holds a tax invoice at the time the prescribed return for the tax period is furnished. ^10[(9) (a) Notwithstanding anything contained to the contrary in sub-sections (1) and (3) and subject to sub-section (2), tax credit in respect of capital goods shall be allowed as follows :- (i) 1/3^rd of the input tax on such capital goods arising in the tax period, in the same tax period; ^14[....
X X X X Extracts X X X X
X X X X Extracts X X X X
....capital goods are used exclusively for the purpose of making sale of exempted goods specified in the first schedule: Provided also that no tax credit in respect of capital goods shall be allowed on that part of the value of such capital goods which represents the amount of input tax on such capital goods, which the dealer claims as depreciation under section 32 of the Income Tax Act, 1961 (43 of 1961). (b) If any capital goods in respect of which tax credit is allowed under clause (a) of this sub-section is transferred to any other person otherwise than by way of sale at the fair market value before the expiry of a period of five years from the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Act, 2009 [Notification no. F.14(16)/LA-2009/LJ/10/LC LAW/1 dated 6-1-2010], earlier it was read as, "where the purchase arises" Further Substituted vide Notification No. F.14(6)/LA-2011/lclaw/193, dated 28/09/2011, before it was read as:- " to the extent of proportion of the goods which have been put to sale" 3. Substituted vide DVAT (Amendment) Act, 2005; No. F.14(6)/LA-2005/112, Dated 28.03.2005, w.e.f. 01.04.2005. 4. Substituted vide DVAT (Second Amendment) Act, 2005; No.F.14(29)/LA/2005/333, Dated 16/11/05. w.e.f. 01.04.2005, retrospectively, before it was read as:- "(f) to the dealers or class of dealers specified in the Fifth Schedule." 5. Re-lettered from "(e)" to "(f)" vide DVAT (Amendment) Act, 2005; No. F.14 (6)/LA-2005/....