MVAT Act 11Chapter II · Incidence and Levy of Tax
Section 11 · Input tax credit
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(1)
Subject to other provisions of this section, there shall be input tax credit of the amount of tax paid or payable by registered dealer in respect of his purchase of taxable goods for resale in Meghalaya or for use by him directly in the manufacture of taxable goods in Meghalaya and containers and other materials for the packing of such goods or inputs thereof in Meghalaya for sale in Meghalaya against the amount of tax or payable by him under this Act on the sales of taxable goods in Meghalaya.Explanation. - No input tax credit shall be available to a registered dealer for tax paid or payable at the time of purchase of goods if such goods are not sold because of any theft, loss or destruction for any reason, including natural calamity, and if a dealer has already taken any input tax credit against purchase of such goods there shall be reverse tax credit at the end of the month in which such goods are stolen, lost or destroyed.(2)
A registered dealer who intends to claim input credit under sub-section (i) shall, for the purpose of determining the amount of input tax credit maintain accounts, evidence and such other records as may be prescribed in respect of the purchases and sales made by him in Meghalaya.(3)
Subject to other provisions of this sub-section, a registered dealer who has claimed input tax credit on his purchases and intends to sell goods in Meghalaya will get his input tax credit reversed on the date of transfer of such goods to such other dealer and shall issue a certificate, as may be prescribed in favour of such dealer certifying the amount of input tax credit against purchase of such goods or purchases f input thereof, as the case may be, in Meghalaya and the agent shall be entitled to get the credit of the same.(4)
No input tax credit under this section shall be allowed to a registered dealer against his purchases unless the amount of tax has been separately charged and shown in the tax invoice issued to him by a registered dealer from whom purchases of such goods have been made.(5)
No input tax credit under this Section shall be allowed to a registered dealer in respect of tax paid under Section-6(6)
Subject to sub-section (7) an input tax credit cannot be claimed by the registered dealer unless the registered dealer has an original tax invoice for the relevant supply of purchases.(7)
Where a registered dealer fails to produce the original tax invoice evidencing the input tax paid, the Commissioner may, subject to such restrictions and conditions as may be prescribed. Allow an input tax credit for the period in which the credit arises if the Commissioner is satisfied.(a)
That the failure produce tax invoice is not due to any fault of the dealer, and(b)
That the amount of input tax claimed by the registered dealer is correct.(8)
Subject to other sub-sections of this section, input tax credit referred to in sub-section (1) in relation to a period shall be determined as follows:- The input tax credit is the aggregate of input tax paid or payable by the dealer in relation to a period less.(i)
Input tax paid or payable in respect of goods returned or rejected by him during such period.(ii)
Input tax paid or payable in respect of goods taxable under this Act or inputs used for manufacturing of such goods, as the case may be disposed of otherwise than by way of sale.(9)
Notwithstanding anything contained in any sub-section of the section:(a)
The amount of input tax credit shall not include tax paid or payable in other States or Unions Territories on goods brought into Meghalaya from outside the State.(b)
No input tax credit shall be allowed against tax paid or payable on goods remaining unsold at the time of stoppage or closure of business and if a dealer has already taken any input tax credit against purchase of such stock of goods, there shall be reverse tax credit on the date of stoppage of closure of such business.(c)
No input tax credit on tax paid or payable in Meghalaya on purchase of goods or inputs used in manufacturing of goods in Meghalaya and subsequently sent to other States or Union Territories otherwise than by way of sale shall be available.(d)
No input tax credit shall be allowed against tax paid or payable on such purchase and under such terms and conditions as may be prescribed.(e)
For the purpose of determining the amount of input tax to be reverse under this section, any one of the methods as may be prescribed will be applied.Your private note on this section
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