CHAPTER IV CALCULATION OF TAX AND TAX CREDIT

 15. Calculation of tax credit under section 11

(1) A registered dealer shall maintain the registers of purchases of goods and mention therein the name and place of the selling dealer, his registration number, serial number and date of tax invoice, description of goods alongwith HSN, quantity of goods, value of goods and the tax charged.

(2) A registered dealer shall claim tax credit under section 11 in a tax period in which he records, in his books of accounts, the tax invoice in respect of his purchases of taxable goods

(3) A registered dealer shall calculate tax credit as per Form-201 and such calculation shall be made separately for each tax period.

(4) The amount involved in purchases specified in sub-section (5) of section 11 shall be excluded from the calculation of tax credit.

(5) The amount of tax paid under sub-section (1)  (2) (5)  or (6)  of section 9 of the Act and the amount of tax paid under the Gujarat Tax on Entry of Specified Goods into Local Areas Act, 2001 shall be claimed in the tax period in which such amount has been paid.

Explanation – For the purpose of calculating the tax credit, the amount of tax under sub-section (1),(5) or (6)  of section 9 of the Act or the amount of tax under the Gujarat Tax on Entry of Specified Goods into Local Areas Act, 2001 is shown payable by the dealer in his return for a tax period, then such amount of tax shall be considered to have been paid in such tax period."

(5A) A registered dealer entitled to claim tax credit under section 11 for the taxable goods held in stock on the date of registration shall furnish a statement in Form 111 of such goods which are purchased after 1st April, 2008 and during the period of one year ending on the date of registration along with the first return after registration:

Provided that the dealer claiming such tax credit shall have to prove to the satisfaction of the Commissioner that the application for registration was made within thirty days of the relevant date of effect applicable to him as per sub-section (3) of section 3.

(5B) A registered dealer entitled to claim tax credit under section 11 and whose permission to pay lump sum tax under section 14 is no longer valid because of turnover exceeding rupees fifty lakhs or is cancelled on his request, shall furnish a statement of such taxable goods in Form  112, which are held in stock on the date of liability to pay tax under section 7 and which are purchased after 1st April, 2008 and during the period of one year ending on the date of liability to pay tax under section 7. The statement shall be furnished along with the next return from the date of liability to pay tax under section 7.

(6) Where the tax credit (other than tax credit on capital goods) admissible in the year remains unadjusted against the output tax as per section 11, such amount shall be refunded not later than expiry of two years from the end of the year in which such tax credit had become admissible:

 Provided that the dealer claiming such refund shall have to prove to the satisfaction of the assessing authority that the purchases of the goods on which such tax credit had been calculated have been disposed off in the manner referred to in sub-section (3) of section 11 within the period by which refund under this sub-rule becomes admissible.

Provided further that the refund may be granted for the amount of tax credit for the purchase of capital goods made during the period from 1st April, 2006 to 31st March, 2008 which remains unadjusted in case of the unit carrying on its business in the processing area or in the demarcated area of Special Economic Zone and approved as such by the Approval Committee as defined in the Gujarat Special Economic Zone Act, 2004 (Guj. 11 of 2004)

(7) In case of sales made in the course of export outside the territory of India and the amount of carried forward tax credit admissible under items (iv) and (v) of clause (a) of sub-section (3) of section 11 remains unadjusted, such amount of tax credit shall be refunded within the period of three months next following the end of the month in which such purchases were made.

(7A) In the case of a dealer who is a trader or a manufacturer and sells taxable goods in the State or who sells taxable goods in the course of inter-state trade or commerce or who despatches taxable goods to his branch or to his consigning agent outside the State and where the amount of the tax credit allowed under section 11 remains unadjusted in the returns continuously in each month of the quarter, such adjusted amount of tax credit may be refunded to such dealer before the period specified in sub-rule (6) or, as the case may be, sub-rule (7).

Provided that the dealer claiming such refund shall have to prove to the satisfaction of the assessing authority that the purchases of the taxable goods on which such tax credit had been calculated, those goods have been disposed off for the purpose referred to in sub-section (3) of section 11 within the period by which refund under this sub-rule becomes admissible.

(8) The refund under this rule  or the refund under section 37 or 40   shall not be admissible unless the dealer furnishes the copies of tax invoices of the purchases for which tax credit and refund thereof is claimed:

Provided that the assessing authority granting the refund is satisfied that the selling dealer has shown such transactions in his return and accounted for in his books of accounts as taxable sales for which tax credit and refund under this rule is claimed.

(9) A registered dealer may claim such net tax credit in the returns to be furnished under sub-rule (1) of rule 19