13. Input tax credit on account of opening stock
Subject to the provisions of rule 56, the input tax credit on account of opening stock to which the dealer is entitled shall –
(a) in a case where such opening stock has been valued exclusive of tax and -
(i) tax under section 12 and 6 of the earlier law has been charged from the dealer holding such stock, be the aggregate of the tax suffered by such opening stock under section 12 and section 6 of the earlier law,
(ii) tax under 6 of the earlier law has been charged from the dealer holding such stock, be the tax suffered by such opening stock under section 6 of the earlier law;
(b) in a case where the opening stock of any goods, held by a dealer from whom tax under section 12 and section 6 of the earlier law has been charged, is valued inclusive of the tax levied under the earlier law then, the tax element included in the opening stock of such goods and qualifying for input tax credit under section 16 shall be the amount arrived at after applying the following formula:
O = [V + (1.01 x Tr x V)] ÷ (101 + 1.01Tr)
Where,
O = The entitlement to input tax credit on account of opening stock of the dealer from whom tax under section 12 and section 6 of the earlier law has been charged;
V = The value of the opening stock, inclusive of tax under the earlier law, of such goods which have been purchased between 01.04.2004 and 31.3.2005 and on which tax under section 12 and 6 of the earlier law has been paid; and
Tr = The rate of tax applicable to the goods in stock under the earlier law.
(c) in a case where the opening stock of any goods, held by a dealer from whom tax under section 12 of the earlier law has been charged, is valued inclusive of the tax levied under the earlier law then, the tax element included in the opening stock of such goods and qualifying for input tax credit under section 16 shall be the amount arrived at after applying the following Formula:
O = (V x Tr) ÷ (100 + Tr); where,
O = The entitlement to input tax credit on account of opening stock of the dealer from whom tax under section 12 of the earlier law has been charged;
V = The value of the opening stock, inclusive of tax under the earlier law, of such goods which have been purchased between 01.04.2004 and 31.3.2005 and on which tax under section 12 of the earlier law has been paid; and
Tr = The rate of tax applicable to the goods in stock under the earlier law.
(d) in a case where the opening stock of any goods, held by a dealer from whom tax under section 6 of the earlier law has been charged, is valued inclusive of the tax levied under the earlier law then, the tax element included in the opening stock of such goods and qualifying for input tax credit under section 16 shall be the amount arrived at after applying the following Formula:
O = V ÷ 101; where,
O = The entitlement to input tax credit on account of opening stock of the dealer from whom tax under section 6 of the earlier law has been charged; and
V = The value of the opening stock, inclusive of tax under section 6 of the earlier law, of such goods which have been purchased between 01.04.2004 and 31.3.2005 and on which tax under section 6 of the earlier law has been paid.
(e) Notwithstanding anything contained in clauses (a), (b), (c) or (d), claims in respect of input tax credit relating to opening stock shall be made by a dealer only in such return filed by him under sub section (1) of section 24 along with which he encloses a true declaration in Form IXC as specified under rule 12 of the Bihar Sales Tax Rules, 1983 issued by the dealer from whom such goods were purchased under the earlier law.
Provided that in the case of a manufacturer, claims in respect of input tax credit relating to opening stock shall be made by a dealer only in such return filed by him under sub-section (1) of section 24 along with which he encloses the following certificate issued by a Chartered Accountant within the meaning of sub-section (2) of section 54:
Certificate
Certified that:
(1) I/We have examined the records, accounts and invoices/bills maintained by M/s ............................................................................................................................... (specify name and address) bearing Taxpayer Identification Number ...............................................;
(2) The goods mentioned in the Table appended to this certificate are being held in stock by the above named dealer on 31-3-2005 and have been purchased from within the State of Bihar after 1-4-2004 upon payment of the tax applicable to them under section 12 and/or section 6 of the Bihar Finance Act, 1981; and
(3) The said dealer is in possession of the original copies of the invoices/bills issued to him by the respective selling dealers.
Sl Description of Goods Applicable Tax Value of Goods Tax on the value
No. held in stock on rate under the in stock specified in column (4)
31-3-2005 earlier law
(1) (2) (3) (4) (5)
Date ................. Signature of Authorised Person(s)
Place ..................... Office Seal |