Rule 133: Dealers Must Proportionately Allocate Input Tax Credit for Capital Goods Based on Transaction Nature.

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....Restriction on Input tax credit - job-work - The amended Rule 133 came into force w.e.f., 1.4.2006 and provides that where a registered dealer carries on the business in taxable as well as exempted goods or exempted transactions and taxable transactions, the input tax deduction on capital goods be allowed proportionately, keeping in view the formula laid down under Rule 131 of the KVAT Rules. - HC....