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15. Net amount of tax payable and treatment of input tax credit exceeding tax liability.
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| (1) |
For any tax period, net amount of tax payable shall be computed using the following equation:
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Net amount of tax payable for any period = Gross amount of tax payable for such period – Gross amount of admissible input tax credit for the period
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| Where - |
| (a) |
gross amount of tax payable for the period is the aggregate of amounts of-
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(i)
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tax payable on the turnover of sale of goods made during the tax period;
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(ii)
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tax payable on turnover of purchase of goods made during the tax period;
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(iii)
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tax on the turnover of sale made during the period or any installment of lump sum falling due during the period, as the case may be, payable under the provisions of section 6;
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(iv)
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any other amount of tax payable; and
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| (b) |
gross amount of admissible input tax credit for the period is the aggregate of amounts of-
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| (i) |
input tax credit claimed in respect of purchase of goods made during the period less amount of reverse input tax credit, if any;
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| (ii) |
input tax credit carried forward from the immediately preceding tax period;
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| (iii) |
any installment of input tax credit in respect of goods held in opening stock on the date from which dealer has become liable to pay tax or in respect of purchase of capital goods;
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| (iv) |
input tax credit in respect of goods held in opening stock on the date on which, in case of a dealer who has opted for payment of tax or a lump sum under section 6 of this Act, provisions of section 6 cease to apply and the dealer continues his business:
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Provided that where a dealer has been allowed moratorium for payment of tax under section 42, gross amount of tax payable for the period shall not include amount in respect of which facility of moratorium is applicable. Amount for which facility of moratorium is applicable shall be paid by the dealer separately in accordance with provisions of section 42.
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| (2) |
If, for any tax period, gross amount of admissible input tax credit under subsection (1) exceeds the differential amount of gross amount of tax payable under that sub-section and the aggregate of amounts of tax paid by the dealer towards tax for such tax period, the excess amount of admissible input tax credit may be adjusted by the dealer against amount of tax payable in the tax return of the corresponding tax period under the Central Sales Tax Act, 1956 and where gross amount of such admissible input tax credit is a negative figure, the dealer, while computing net amount of tax payable under subsection (1), shall add such amount to gross amount of tax payable by the dealer.
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Explanation: For the purpose of this sub-section, expression “aggregate of amounts of tax paid by the dealer towards tax of such tax period” shall mean the aggregate of amounts of-
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| (a) |
tax deposited by the dealer towards tax of such tax period;
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| (b) |
tax deducted at source under provisions of section 34 in respect of any sale of goods where such sale is made during such tax period; and
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| (c) |
refund adjusted towards tax of such tax period:
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Provided that amount under clause (a), (b) or (c) shall not be included in the aggregate of amounts of tax paid by the dealer towards tax of such tax period unless the dealer furnishes adequate documentary proof in respect thereof alongwith tax return of such tax period.
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| (3) |
Any excess amount of input tax credit left over after adjustment as provided in sub-section (2) shall be carried forward and be added to the amount of input tax credit for the next tax period:
Provided that in case of a dealer whose main business is to sell goods in the course of the export of the goods out of the territory of India, the assessing authority shall allow provisional refund of excess amount of input tax credit for any tax period in accordance with the provisions of section 41.
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| (4) |
Where a dealer has submitted returns for all tax periods of an assessment year, and if any amount of excess admissible input tax credit still exists according to the tax return of the last tax period, such excess amount of admissible input tax credit, subject to provisions of sections 40, shall be refunded to the dealer within thirty days after the last date prescribed or allowed for submission of the return of last tax period of such assessment year.
Provided that excess amount of admissible input tax credit remaining in balance on the last day of the assessment year in which dealer has become liable for payment of tax, shall, subject to provision of sub-section (3), be carried forward to the first tax return of the next assessment year and any excess amount of input tax credit according to the tax return of the last tax period of later assessment year shall be refunded to the dealer within thirty days after the last date prescribed or allowed for submission of return of the last tax period of the such later assessment year.
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| (5) |
Notwithstanding anything contained in sub-section (4) where a dealer discontinues business, refund of any excess amount of admissible input tax credit relating to last tax period of the assessment year during which business has been discontinued shall be allowed within Ninety days after the date of passing of assessment order for such assessment year.
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| (6) |
Where tax return for any tax period of any assessment year has not been submitted by the last date prescribed or allowed for submission of tax return of the last tax period of the assessment year, excess amount of admissible input tax credit, if any, for such assessment year, subject to provisions of sections 40 shall be refunded to the dealer within a period of Ninety days after the assessment order in respect of such assessment year has been passed.
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| (7) |
Notwithstanding anything contained contrary to in sub-section (3) and subsection (4), any excess amount of admissible input tax credit left over in the tax return of the last tax period of any assessment year, at the option of the dealer, may be carried forward to the tax return of the first tax period of the succeeding assessment year.
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