Claim of amount of input tax credit.

24. Credit of amount of input tax, in respect of goods in respect of which dealer is entitled for claiming input tax credit, shall be claimed as

under: -

(a) In respect of capital goods required for use in manufacture,in three successive annual installments of equal amount and shall be claimed in the tax return of the first tax period of the assessment year. The first such installment shall be claimed in the tax return of first tax period of the assessment year succeeding the assessment year in which capital goods liable to input tax credit, has been purchased and subsequent installment shall be claimed in first tax period of subsequent assessment year :

Provided that where the manufactured goods is disposed of in different modes whether by way of sale or otherwise, only proportionate amount of annual installment computed on pro rata basis shall be claimed and be allowed to the extent it is admissible :

Provided further that in case of captive power plant where percentage consumption of electrical energy is less than ninety, only proportionate amount of annual installment of input tax credit shall be claimed and be allowed:

Provided also that for the manufacturing units established under the Infrastructure and Industrial Investment Policy, 2012 of the State Government, the input tax credit in respect of the capital goods purchased during any assessment year shall be claimed and be admissible in the return of the first tax period of the succeeding assessment year .This facility shall be available for such units till the continuation of the said policy or 5 years from the date of first purchase of plant, machinery from within the State, whichever is earlier. This provision shall be applicable after the commencement of the Uttar Pradesh Value Added Tax(Fourth Amendment) Rules,2013

Provided further that in case of captive power plant where percentage consumption of electrical energy is less than ninety, only proportionate amount of annual installment of input tax credit shall be claimed and be allowed :

Provided also that for the manufacturing units established under the Infrastructure and Industrial Investment Policy, 2012 of the state Government, the input tax credit in respect of the capital goods purchased during any assessment year shall be claimed and be admissible in the return of first tax period of the succeeding assessment  year. This facility shall be available for such units till the continuation of the said policy or 5 years from the date of first purchase of plant, machinery from within the state, whichever is earlier. This provision shall be applicable after the commencement of the Uttar Pradesh   Value Added Tax (Fourth Amendment) Rules, 2013.

(b) in respect of goods purchased within six months before the date of the commencement of the Act and held in opening stock on the date of such commencement, in six successive monthly or quarterly installments, as the case may be, of equal amount and first such installment shall be claimed in the tax return of the tax period which starts after expiry of period of five months commencing on the date of the commencement of the Act and subsequent installment shall be claimed in successive return of tax period, monthly or quarterly, as the case may be;

(c) in a case in which a dealer becomes liable to pay tax on any date after the date of the commencement of the Act, in respect of goods held in opening stock on the date on which a dealer becomes liable to pay tax, in six successive monthly or quarterly installments, as the case may be, of equal amount and first such installment shall be claimed in the tax return of the tax period which starts after expiry of period of four months commencing from the month in which registration certificate is issued to such dealer and subsequent installment shall be claimed in successive return of tax period, monthly or quarterly, as the case may be;

(d) in respect of goods held in closing stock on the last day of period of composition under section 6, in the tax return of the period in which the day following the last day of the period under composition falls; and

(e) in all other cases in the tax return of the tax period in which goods have been purchased.

Explanation:

(1) For the purposes of clauses (b), (c) and (d) of this rule goods held in stock includes goods, used in manufacture or processing of finished goods or semi-finished goods in the process of manufacture and held in stock

(2) For the purposes of clauses (b) and (c) of this rule if fifth or fourth month expires in a tax period respectively as defined under clause (b) of sub-rule (1) of rule 45 the first installment shall be claimed in the tax return of the tax period in which fifth or fourth month respectively expires.