(1) A non-manufacturing dealer shall incur a reverse credit in the following circumstances:
(a) Stock transfers effected within the State out of goods purchased from within the State after paying thereon the tax leviable either under the Act or the earlier law;
(b) Stock transfers effected outside the State out of goods purchased from within the State after paying thereon the tax leviable either under the Act or the earlier law;
(c) Goods returned by the purchasing dealer in terms of sub-rule (5) of Rule 18;
(d) Inputs purchased by the dealer from another registered dealer and the right wherein to use is transferred to another person or used for self consumption or as gift; and
(e) Inputs purchased by the dealer from another registered dealer on which input tax credit has been claimed by the purchasing dealer and which have been lost, stolen or destroyed.
(2) The dealer shall compute the reverse credit that he has incurred during a month on account of: -
(a) The value of stock transfers within the state, which shall be the amount arrived at after applying the following Formula-
R1 = [(A x I) / P]
Where,
(b) The value of stock transfers outside the State, which shall be the amount arrived at after applying the following Formula-
R2 = [B x I / P]
(c) In respect goods returned by the purchasing dealer in terms of sub-rule (5) of Rule 18, which shall be the amount arrived at after applying the following Formula-
R3 = (C x Rt) / 100
(d) In respect of inputs purchased by the dealer from another registered dealer and the right wherein to use is transferred to another person or used for self consumption or as gift which shall be the amount arrived at after applying the following formula:
R4 = (D x I) / P
(e) In respect of inputs purchased by the dealer from another registered dealer and consumed in the manufacture of goods part of which are specified in Schedule IV of the Act which shall be the amount arrived at after applying the following formula:
R5 = (E x I) / F
(f) Inputs purchased by the dealer from another registered dealer on which input tax credit has been claimed by the purchasing dealer and which have been lost, stolen or destroyed which shall be the amount arrived at after applying the following formula :
R6 = (G x I) / P