(1) A manufacturing dealer shall incur a reverse credit in the following circumstances:
(a) Sales by a manufacturer of goods specified in Schedule I and which have been manufactured by him from inputs other than those specified in Schedule I;
(b) Stock transfers effected within the State by a manufacturer of goods specified in Schedule I and which have been manufactured by him from inputs other than those specified in Schedule I;
(c) Stock transfers effected outside the State by a manufacturer of goods specified in Schedule I and which have been manufactured by him from inputs other than those specified in Schedule I;
(d) Inputs purchased by the dealer from another registered dealer and used in the manufacture of goods the right wherein to use is transferred to another dealer or used for self consumption or as gift;
(e) Inputs purchased by the dealer from another registered dealer on which input tax credit has been claimed by the purchasing dealer and used in the manufacture of goods which have been lost, stolen or destroyed; and
(f) 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.
(2) A manufacturing dealer shall first compute the input-output ratio by applying the following Formula-
K = (OB + PR - CB) / (V) X (W) / PR
Where,
K = The input-output ratio for the immediately preceeding year;
OB = The value of opening stock of all goods on the first day of the immediately preceeding year;
PR = The value of all goods purchased during the immediately preceeding year;
CB = The value of closing stock of all goods on the last day of the immediately preceeding year;
V = The aggregate of the sale of goods sold within the state, sales in the course of inter-state trade and commerce, stock transfers, exports and sales of goods specified in Schedule I of the Act during the immediately preceeding year; and.
W = The value of all goods purchased from within the State of Bihar during the immediately preceeding year.
Provided that the value of K shall be taken at 0.85 in the case of a dealer commencing business at any time after the appointed date.
(3) After computing the value of K as aforesaid, the dealer shall compute the reverse credit that he has incurred during a quarter on account of: -
(a) Sales by a manufacturer of goods specified in Schedule I and which have been manufactured by him from inputs other than those specified in Schedule I, which shall be the amount arrived at after applying the following Formula:
(b) Stock transfers effected within the State by a manufacturer of goods specified in Schedule I and which have been manufactured by him from inputs other than those specified in Schedule I, which shall be the amount arrived at after applying the following Formula:
(c) Stock transfers effected outside the State by a manufacturer of goods specified in Schedule I and which have been manufactured by him from inputs other than those specified in Schedule I, which shall be the amount arrived at after applying the following Formula:
(d) Inputs purchased by the dealer from another registered dealer which have been used by him in the manufacture of such goods the right wherein to use is transferred to another dealer or have been used for self consumption or as gift, which shall be the amount arrived at after applying the following Formula:
(e) Inputs purchased by the dealer from another registered dealer on which input tax credit has been claimed by the purchasing dealer and used in the manufacture of goods which have been lost, stolen or destroyed which shall be the amount arrived at after applying the following Formula:
(f) 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: