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

Body 22. Input tax credit or input tax rebate on the stock of goods, in case of dealers registered under the Act after the appointed day, as on the date of incurring liability to pay tax under the Act.-

(1) A registered dealer, other than a shipper of jute, an auctioneer, broker, or any other agent, will get input tax credit or input tax rebate on goods, other than capital goods, lying in stock with such dealer on the date of his incurring liability to pay tax under section 10, or section 11, or section 14, or sub-section (3) of section 24, or sub-section (3) of section 27C and purchased within a period of twelve English calendar months and upto the date prior to such date of incurring liability, which are for resale or for direct use in manufacturing, or for packing of the goods so resold or manufactured by him or for use in the execution of works contract or for making transfer otherwise than by way of sale subject to sub-section (7) of section 22:

Provided that no input tax credit or input tax rebate shall be available to a dealer on the goods lying in stock on the date prior to the date of registration when the dealer has not made the application for registration under sub-section (2) of section 23 within thirty days from the date of his incurring liability to pay tax under the Act.

Provided further that goods for which no price has been paid or is payable, or which was not purchased from within West Bengal, will be excluded from the opening stock.

Provided also 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 Commissioner or the officer authorised under sub-section (1) of section 6 has to be satisfied that there is consistency in the method of determination of valuation of such stock 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) For the purpose of availing input tax credit or input tax rebate as provided in sub-rule (1), a registered dealer shall produce before the appropriate assessing officer, evidence for payment of tax paid or payable at the time of purchase of those goods.

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 purchases made before the appointed day but within the time-limit prescribed in sub-rule (1), the provisions of the first proviso to sub-rule (3) of rule 21 shall apply mutatis mutandis in calculating input tax credit or input tax rebate on such stock of goods.

Provided further that if the goods lying in stock of a registered dealer were purchased before the appointed day but within the time-limit prescribed in sub-rule (1), 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.

(3) 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 or under any of the provisions of the Act and are taxable under the Act.

Provided that where a dealer has purchased goods by paying tax on maximum retail price under the provisions of the Act where such goods have suffered tax under sub-section (4) of section 16, he shall not be entitled to any input tax credit or input tax rebate on such goods lying in his stock.

(4) A registered dealer intending to enjoy input tax credit or input tax rebate on goods lying in stock on the date of incurring liability, shall, within forty-five days from the date of registration, 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 tax invoice, invoice, cash memo or bill obtained at the time of purchase shows the tax separately,

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

(c) a break-up of semi-finished goods and finished goods lying in stock of a manufacturer and the value of raw materials 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 ------------

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 tax invoice, invoice, cash memo or bill obtained at the time of purchase shows the tax separately.

Rate of tax on the item specified in column(3) under		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 (including 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/ rebate claimed(tax+Sch+ Addl sch, if any)
the Act if purchased on or after the appointed day.	the WBST Act, 1994, if any, purchased before the appointed day.
(1)		(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
@ I%		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 tax invoice, invoice, cash memo or bill obtained at the time of purchase does not show the tax separately, and

Rate of tax on the item specified in column(3) under		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 qty / 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 rebateclaimed(tax+ Sur-charge+ addl. sur-charge, if any)
the Act if purchased on or after the appointed day.	the WBST Act, 1994, if any, purchased before the appointed day.
(1)		(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)
@ I%		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			Purchase from outside West Bengal	Others, if any	Direct Labour	Overhad	Total	Input tax credit/ Input tax rebate claimed
	Purchase from West Bengal								Input tax credit/ Input tax rebate claimed
	Tax charged	Tax not charged	Exemption						on raw materials	Total
Semi-finished goods
Finished goods
Total

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

Signature________________________________

Name________________________________

Status________________________________

N.B. Enclose work-sheet for calculations;

(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) Omitted.

(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 or input tax rebate that such dealer is entitled to enjoy upon such stock of goods and if the amount so determined is less than the amount claimed by such dealer in the statement submitted under sub-rule (4), such appropriate assessing authority shall communicate the order to such dealer within six months from the date of submission of the statement referred to in sub-rule (4):

Provided that if any mistake or incorrect statement is found in the statement submitted by such 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 stock of goods, the amount of input tax credit or input tax rebate that such dealer is entitled to enjoy upon such stock of goods may be re-determined in accordance with the provisions of these rules.

(8) The input tax credit or input tax rebate on the stock of goods 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:

Provided that if a registered dealer has enjoyed input tax credit or input tax rebate in excess of the amount that such dealer is entitled to enjoy upon such 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 such dealer.

(9) If any stock of goods eligible for input tax credit or input tax rebate under sub-rule (1) is sold by the dealer within four months from the date of registration, 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 officer appointed under sub-section (1) of section 6.

(10) No input tax credit or input tax rebate shall be available to a dealer on the stock of goods for which a statement as referred to in sub-rule (4) has not been filed within a period of forty-five days from the date of order of granting registration.

Explanation. For the purpose of this rule-

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