10. Adjustment to tax credit
(1) Subject to sub-sections (1) and (2) of section 8, where any purchaser has been issued with a credit note or debit note in terms of section 51 of this Act or if he returns or rejects goods purchased, as a consequence of which the tax credit claimed by him in any tax period in respect of which the purchase of goods relates, becomes short or excess, he shall compensate such short or excess by adjusting the amount of the tax credit allowed to him in respect of the tax period in which the credit note or debit note has been issued or goods are returned.
Explanation : While issuance of a, credit note of a post sale discount or incentive by a selling dealer, where no adjustment to output tax, as per the provisions of sub-sections (1) and (2) of section 8 has been made, no adjustment for reduction of input tax credit would be required by the respective buying registered dealer;"; and
(2) If goods which have been purchased were -
(a) intended to be used for the purposes specified under sub-section (1) of section 9 of this Act and are subsequently used, fully or partly, for purposes other than those specified under the said sub-section; or
(b) intended for purposes other than those specified under sub-section (1) of said section 9 of this Act, and are subsequently used, fully or partly, for the purposes
specified in the said sub-section;
the tax credit claimed in respect of such purchase shall be reduced or increased (as the case may be) for the tax period during which the said utilization otherwise has taken place.
(3) Where –
(a) goods were purchased by a dealer;
(b) the dealer claimed a tax credit in respect of the goods, and did not reduce the tax credit by the prescribed percentage; and
(c) the goods are exported from Delhi, -
(i) by way of a sale made as per the provisions of sub-section (1) of section 8 of the Central Sales tax Act, 1956; or
(ii) other than by way of a sale, to a branch of the registered dealer or to a consignment agent;
the dealer shall reduce the amount of tax credit originally claimed by the prescribed proportion
(4) If goods which have been purchased by a dealer were –
(a) intended to be used for the purposes specified under sub-section (1) of section 9 of this Act; and
(b) are subsequently incorporated into the structure of a building owned or occupied by the person;
the tax credit claimed in respect of such purchase shall be reduced in the tax period during which such incorporation takes place.
(5) Subject to sub-sections (1) and (2) of section 8 and conditions as may be prescribed, where the goods which have been purchased by a dealer are sold at a price lower than the price at which it was purchased by the dealer, the tax credit on such purchases shall be reduced proportionately in the tax period during which the goods are sold.
Explanation. – The tax credit claimed on a particular purchase shall not exceed the amount of tax payable on its sale |