(1) For the purposes of calculating the net tax payable by a registered person for a tax period, an input tax credit as determined under sub-section (5) of section 10 shall be allowed to the registered person for the tax payable in respect of purchase of taxable commodities as mentioned in Schedule-VIII and sale of all taxable commodities other than the commodities mentioned in Schedule II(d) of the Act or any other goods which the State Government may notify from time to time.

(2) For the purpose of calculating the net tax payable by a registered person for his first tax period after becoming registered, an input tax credit as determined under sub-section (5) of section 10 shall be allowed to the registered person for the tax payable in respect of :-

(a) all taxable sale of goods (excluding capital goods) made to the person prior to the person becoming registered, or

(b) purchase of goods made by the person prior to becoming registered.

Provided that the purchase was for use in the business of the dealer, and the sale or purchase occurred not more than three months prior to becoming liable to pay tax and the goods are in stock at the date of registration.

(c) The particulars of goods in stock purchased not more than three months before the dealer is liable to pay tax shall be in Form XXXII.

(3) The tax invoice or purchase voucher against which tax credit is claimed or the certificate granted by the Commissioner for exemption thereof, as the case may be, shall be furnished by a dealer before the concerned Assessing Authority at the time of hearing for assessment under section 29 or section 30 or section 31 and or auditing authority at the time of auditing under section 28 by such authority, as the case may be.

(4)     Inadmissibility of invoices or purchase voucher for input tax credit in certain cases:-  Any claim by a dealer for input tax credit shall not be admissible if he accepts from any dealer or person invoice or invoices -

(a) which has not been duly obtained from a registered dealer against a bonafide transaction;

(b) which has not been issued in accordance with the prescribed format in original giving full particulars therein ;

(c) which has been issued by a dealer whose certificate of registration has been cancelled under sub-section (7) of section 19 or suspended under sub-section (8) of section 19 of the Act and the invoice / invoices have been issued during the period under such suspension or after cancellation.

(d) which does not show the amount of tax charged separately.

(5) Exemption from furnishing invoices or purchase vouchers reported loss of invoices or purchase vouchers due to thefts, or destruction by fire or by natural calamity ;

(i)  Where on account of loss of any invoice or purchase vouchers due to theft or destruction by fire or by natural calamity, a dealer is not in a position to substantiate his claim in terms of clause (vi) of sub-section (6) of section 10, and where he claims an order of the Commissioner to exempt him from furnishing such invoices or purchase vouchers, such dealer may, ordinarily within three months from the date of theft, fire, natural calamity as the case may be, make an application in writing to the Commissioner requesting him to pass an order in this matter.

(ii) In his application to the Commissioner under clause (i) of this sub-rule the dealer shall furnish, interalia, the following particulars :-

(a) the year comprising period or periods to which the claim relates ;

(b) the nature of claim covered by the invoices or purchase vouchers specifying the relevant provision of the Act ;

(c) name of the selling dealer and his registration certificate under the Act ;

(d) amount of the claim for each period under each provision of the Act for which invoices or purchase vouchers are claimed to have been lost ;

(e) particulars of first information report, if any, lodge with local Police Station or any report of Fire Service Station or any other authority ;

(f)  extent of damage caused by fire or natural calamity or theft on the basis of certificate from the Authorities concerned ;

(g) any other evidence that the dealer wishes to adduce.

(iii) The Commissioner may, on the application made by a dealer under clause (1) of sub-rule (5) of Rule 6 may cause such enquiries as he considers necessary or call for any evidence from the dealer or any other person or authorities which may be deemed necessary for disposal of such application.

(iv) Where the Commissioner is satisfied that the dealer is not in a position to furnish all or any of the tax invoices or purchase vouchers on account of loss of such evidences due to fire or any natural calamity or theft beyond the control of such dealer the Commissioner may, by an order in writing exempts such dealer from furnishing such tax invoice or purchase vouchers subject to conditions, if any, as he may specify in the said order.

Provided that the Commissioner may refuse to exempt any dealer from furnishing invoices or purchase vouchers where the dealer is found to have not furnished return relating to relevant period of claims under sub-section (1) of section 24.

(6) (i)      Tax Invoice as referred to in section 50 shall be in Form XXIX.

(ii) Credit note referred to in section 17(1) shall be in Form XXX.

(iii) Debit note referred to in section 17(2) shall be in Form XXXI.

(iv) The purchase vouchers referred to in sub-section (2) of Section 50A shall be in Form-XLI.

(7) Every dealer claiming input tax credit under sub-section (5) of section 10 shall submit along with return a statement of purchase in Form XXXVII and a statement of sales in Form XXXVIII.

(8) (1)     A registered dealer eligible to pay a lump sum in lieu of tax by way of composition may opt for such composition and give his option in form XXXIX to the appropriate Superintendent of Taxes within the period specified in section 15.

(2) The lump sum payable by a registered dealer will be fixed at such percentage of his entire taxable turnover of goods as the Government may by order notify for every quarter of the year for which the option has been given. Such lumpsum shall be paid by chalan in form XVIII within fifteen days, of the expiry of the quarter. A copy of chalan in proof of such payment shall be sent to the appropriate Superintendent of Taxes within seven days of such payment.