INPUT TAX

CREDIT

Simply it means, in a particular

period, say a month, the output tax

is reduced by input tax paid.

Normally it is available for the

entire VAT paid within the state on

purchases of taxable goods meant

for resale / manufacture of taxable

goods.

NEERAJ GUPTA TAX CLASSES – 9266664949, 9810398903

A Dealer cannot

claim the input tax

credit if the

purchase of goods

and capital goods

are not meant for

business.

NEERAJ GUPTA TAX CLASSES – 9266664949, 9810398903

ELIGIBLE PURCHASE

FOR INPUT TAX CREDIT

: To be eligible for the

credit, the purchases

should be for any of the

following purposes :

1. For sale / resale

within the state

NEERAJ GUPTA TAX CLASSES – 9266664949, 9810398903

2. For sale to other parts of India in the

course of inter-state trade or commerce

3. For being used in execution of a works

contract

4. To be used as capital goods required for

the purpose of manufacture of taxable

goods

5. To be used as

raw materials

capital goods

consumable stores

packing materials / containers

NEERAJ GUPTA TAX CLASSES – 9266664949, 9810398903

and goods so manufactured

by the use of above items are

sold in the course of export

out of the territory of India.

6. For making zero rated sale

like sale to exporters or sale

to SEZ or to international

organisations

NEERAJ GUPTA TAX CLASSES – 9266664949, 9810398903

7. To be used as

containers or packing

material, raw material,

consumable stores in

manufacture of taxable

goods or in the packing of

such manufactured goods

(intended for local or inter

state sale)

NEERAJ GUPTA TAX CLASSES – 9266664949, 9810398903

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