THE WEST BENGAL VALUE ADDED TAX RULES, 2005
CHAPTER V :

21. Input tax credit or input tax rebate on transitional stock of goods in case of dealers deemed to be registered under sub-section (3) of section 23 of the Act with effect from the appointed day -

(1) Subject to sub-rule (6), input tax credit or input tax rebate will be available on opening stock of goods, other than capital goods, held on the appointed day by a registered dealer, other than a shipper of jute, auctioneer, broker, or any other agent, purchased on or after 1^st April, 2004, for the purpose of manufacture, resale, or execution of works contract or for making transfer otherwise than by way of sale subject to sub-section (7) of section 22:

Provided that goods for which no price has been paid or is payable or which have not been purchased from and within West Bengal, shall be excluded from the opening stock:

Provided further that for ascertaining the value of opening stock of semi-finished goods or work in progress or finished goods, of a manufacturer, accepted method of accounting shall be followed by a dealer and the appropriate assessing authority has to be satisfied that there is consistency in the method of determination of valuation by such dealer.

Provided also that if stock of goods of a dealer includes any stock of goods lying with the branch office or any agent outside the State of West Bengal, the dealer shall not be entitled to input tax credit or input tax rebate on such stock of goods which is lying with such branch or agent.

(2) Notwithstanding anything contained in sub-rule (1), input tax credit or input tax rebate will be available only on stock of those goods that suffered any kind of tax under section 12, section 13, section 16, section 16A, section 16B, or section 17 of the West Bengal Sales Tax Act, 1994 (West Ben. Act XLIX of 1994) prior to the appointed day and are taxable under the Act.

(3) The claim for input tax credit or input tax rebate shall be supported by proof regarding payment of tax by the purchasing dealer:

Provided that if the registered dealer fails to adduce any proof, to the satisfaction of the appropriate assessing officer regarding payment of tax at the time of purchase, input tax credit or input tax rebate shall be calculated, on eighty per centum of the aggregate of purchase price of the stock of goods calculated for individual basic tax rates where such individual basic tax rates were less than or equal to ten per centum, or on seventy per centum of the aggregate of purchase price of the stock of goods calculated for individual basic tax rates where such basic individual tax rates were above ten per centum:

Provided further that if the goods lying in stock of a registered dealer were purchased from another dealer who, at the time of such sale, had been enjoying deferment, exemption or remission, input tax credit or input tax rebate shall be calculated on the basis as referred to in the first proviso:

Provided also that if the goods lying in stock are those on which a registered dealer has already enjoyed set-off of tax under any of the provisions of the West Bengal Sales Tax Act, 1994 (West Ben. Act XLIX of 1994), no input tax credit or input tax rebate shall be available on such stock of goods.

(4) A registered dealer intending to enjoy input tax credit or input tax rebate on stock of goods lying on the appointed day, shall, within thirty days, submit to the appropriate assessing authority, a statement giving-

(a) list of goods other than semi-finished goods and finished goods of a manufacturer; lying in stock, where purchase invoice or bill shows the tax separately;

(b) list of goods other than semi-finished goods and finished goods of a manufacturer lying in stock, where purchase invoice or bill does not show the tax separately, and

(c) a break-up of semi-finished goods and finished goods lying in the stock of a manufacturer and the value of raw materials and consumable stores used for manufacturing such semi-finished or finished goods, as the case may be,

in the following form no.at:

STATEMENT OF STOCK OF GOODS AS ON IST APRIL, 2005

Name of the dealer :

Address :

Registration Certificate No.:

[Under the West Bengal Value Added Tax Act, 2003].

(a) Statement of goods other than semi-finished goods and finished goods of a manufacturer lying in stock, where purchase invoice or bill shows the tax separately,

Rate of tax under the West Bengal Sales Tax Act, 1994 on the items specified in column (3)	Serial No.	Item	Name and Address of the selling dealer.	Registration Certificate No. (if any,) of the selling dealer.	Invoice/Bill No. with date of the selling dealer	Quantity/Number Lying in stock	Purchase Value (excluding tax, sur-charge, addl. Sur-charge and eligible Turnover Tax, if any) of the qty./ no. lying in stock (Rs)	Aggregate purchase price for individual tax rates [sub total]	Input tax credit/ input tax rebate claimed (tax+Sur-charge + Addl. Sur-charge eligible Turnover Tax , if any)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
@ 1%	i) ii) iii)
@ 2%	i) ii) iii)
@ 3%	i) ii) iii)
@ 4%	i) ii) iii)
@ 4.55%	i) ii) iii)
@ 4.80%	i) ii) iii)
@ 5%	i) ii) iii)
@ 7%	i) ii) iii)
@ 8%	i) ii) iii)
@ 10%	i) ii) iii)
@ 12%	i) ii) iii)
@12.5%	i) ii) iii)
@15%	i) ii) iii)
@ 17%	i) ii) iii)
@ 20%	i) ii) iii)
@	i) ii) iii)
@	i) ii) iii)
@	i) ii) iii)
								Total

(b) Statement of goods other than semi-finished goods and finished goods of a manufacturer lying in stock, where purchase invoice or bill does not show the tax separately,

Rate of tax under the West Bengal Sales Tax Act, 1994 on the items specified in column (3)	Serial No.	Item	Name and Address of the selling dealer.	Registration Certificate No. (if any,) of the selling dealer.	Invoice/Bill No. with date of the selling dealer	Quantity/Number Lying in stock	Purchase Value of the quantity /number lying in stock (Rs)	Aggregate purchase price for individual tax rates [sub total]	70%/80% of the amount specified in column (9).	Input tax credit/ input tax rebate claimed
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(10)
@ 1%	i) ii) iii)
@ 2%	i) ii) iii)
@ 3%	i) ii) iii)
@ 4%	i) ii) iii)
@ 4.55%	i) ii) iii)
@ 4.80%	i) ii) iii)
@ 5%	i) ii) iii)
@ 7%	i) ii) iii)
@ 8%	i) ii) iii)
@ 10%	i) ii) iii)
@ 12%	i) ii) iii)
@12.5%	i) ii) iii)
@15%	i) ii) iii)
@ 17%	i) ii) iii)
@ 20%	i) ii) iii)
@	i) ii) iii)
@	i) ii) iii)
@	i) ii) iii)
									Total

	Raw materials consumed.			Consumable Stores consumed.			Others, if any	Direct Labour	Over-head	Total
	Purchase from W.B.		Purchase from outside W.B.	Purchase from W.B.		Purchase from outside W.B.
	Tax charged	Tax not charged		Tax charged	Tax not charged
Semi-finished goods
Finished goods
Total

Certified that the details given above are true to the best of my knowledge.

Signature ____________________

Name : ____________________

Status : ____________________

(5) Where the value of goods declared in the statement referred to in sub-rule (4), exceeds, rupees twenty lakh in case of a reseller or, rupees ten lakh in case of a manufacturer or works contractor, such value shall be certified by a practicing Chartered Accountant.

(6) No input tax credit or input tax rebate will be available to a registered dealer, on the stock of goods for which a statement as referred to in sub-rule (4) has been filed, within the 31st day of August, 2005.

(7) After submission of the statement referred to in sub-rule (4) by a registered dealer, the appropriate assessing authority may make an order determining the amount of input tax credit for input tax rebate that the dealer is entitled to enjoy upon such opening stock of goods and if the amount so determined is less than the amount claimed by the dealer in the statement submitted under sub-rule (4), such appropriate assessing authority shall communicate the order to such dealer within the 31st day of December, 2005 :

Provided that if any mistake or incorrect statement is found in the statement submitted by a dealer under sub-rule (4) or in the order of the appropriate assessing authority, as the case may be, resulting in excess claim or excess allowance of input tax credit or input tax rebate in respect of such opening stock of gods, the amount of input tax credit or input tax rebate that the dealer is entitled to enjoy upon such opening stock of goods may be re-determined in accordance with the provisions of these rules.

(8) Input tax credit or input tax rebate on the opening stock as referred to in sub-rule (1), shall be allowed from the first day of the month following the month in which the statement referred to in sub-rule (4) is submitted by the registered dealer and the amount of such input tax credit or input tax rebate shall not exceed the amount as determined under sub-rule (7) :

Provided that if a registered dealer has enjoyed input tax credit or input tax rebate in excess of the amount that the dealer is entitled to enjoy upon such opening stock of goods as determined or re-determined under sub-rule (7), such excess amount shall be reverse credited in the month in which the communication about such determination or re-determination is received by the dealer.

(9) If any stock of goods eligible for input tax credit or input tax rebate under sub-rule (1) is sold by the registered dealer , the tax invoice evidencing sale of such goods shall also be preserved by such dealer for inspection and verification by the appropriate assessing authority or any other authority appointed under sub-section (1) of section 6.

(10) No input tax credit or input tax rebate shall be available on tax paid or payable on hire charges accrued on or after the appointed day on goods acquired by a dealer on hire purchase before the appointed day.

Explanation .- For the purpose of this rule-

(a) opening stock of goods for a manufacturer shall include stock of raw materials, consumable stores, semi-finished goods or work in progress, finished goods and packing materials of finished goods.

(b) tax rate to be considered for credit or rebate will be the actual rate at which tax was paid or payable at the time of purchase of the goods irrespective of the rate under the Act.