(1) where goods are purchased within the state by a registered dealer on tax invoice which are intended for sale by way of transfer of right to use, the dealer making such purchases shall furnish the required information in Annexure-III-A of the return and credit of input tax shall be allowed in the tax period during which the first of such sale by way of transfer of right to use is made.

(2) The balance admissible input tax on account of purchase of goods for sale by way of transfer of right to use remaining unadjusted till the tax period shall be credited in the first tax period after the OVAT (Amendment) Rules 2009 come into force;

(3) In cases where goods purchased for sale by way of transfer of right to use are not sold but used otherwise, the input tax availed shall be reversed as per provisions of clause (a) of sub section (9) of section 20.