INPUT TAX CREDIT ( Andhra Pradesh Commercial Tax )

Section 13. Credit for input tax.— (1) Subject to the conditions if
any, prescribed, an input tax credit shall be allowed to the VAT dealer for the
tax charged in respect of all purchases of taxable goods, made by that dealer
during the tax period, if such goods are for use in the business of the VAT
dealer. No input tax credit shall be allowed in respect of the tax paid on the
purchase of goods specified in Schedule VI.
(2) (a) A dealer registered as a VAT dealer on the date of commencement
of the Act, shall be entitled to claim input tax credit for the sales tax paid
under Andhra Pradesh General Sales Tax Act, 1957 (Act VI of 1957) on the
stocks held in the State on the date of commencement of the Act subject to the
conditions and in the manner as may be prescribed :
(b) Subject to the conditions if any, prescribed, input tax credit shall
be allowed to a VAT dealer on registering as VAT dealer if any
input tax is paid or payable in respect of all purchases of taxable
goods, where such goods are for use in the business as VAT dealer,
provided the goods are in stock on the effective date of registration
and such purchase occurred not more than three months prior to
such date of registration.
(3) A VAT dealer shall be entitled to claim :—
(a) input tax credit under sub-section (1), on the date the goods are
received by him, provided he is in possession of a tax invoice;
(b) input tax credit or sales tax credit under sub-section (2), on the
date of registration, provided he is in possession of documentary
evidence therefor.
(4) A VAT dealer shall not be entitled for input tax credit or sales tax
credit in respect of the purchases of such taxable goods as may be prescribed.
(5) No input tax credit shall be allowed on the following :—
(a) works contracts where the VAT dealer pays tax under the
provisions of clauses (b), (c) and (d) of sub-section (7) of section 4;
(b) transfer of a business as a whole;
(c) sale of exempted goods except when such goods are sold in the
course of export or exported outside the territory of India;
(d) exempt sale;
(e) transfer of exempted goods on consignment basis or to branches
of the VAT dealer outside the State otherwise than by way of sale;
(f) 1[x x x]
(6) The input tax credit for transfer of taxable goods outside the state
by any VAT dealer otherwise than by way of sale shall be allowed for the
amount of tax in excess of 4%.
(7) Where any VAT dealer pays tax under clause (a) of subsection
(7) of section 4, the input tax credit shall be limited to 90% of the related
input tax.
(8) Where goods purchased by a VAT dealer are partly for his business
use and partly for other than his business use, the amount of the input tax
credit shall be limited to the extent of input tax that relates to the goods used
in his business.
(9) A Turnover Tax dealer or a casual trader shall not be entitled to
claim input tax credit.