13. Input tax credit in phased manner. –

(1) Where a dealer transfers the right to use any goods for any purpose, whether or not for a specified period, for cash, deferred payment or other valuable consideration, input tax credit shall be allowed in a phased manner under sub-section (4) of section 20.

(2) The input tax credit as referred to in sub-rule (1) shall be phased out equally over the life time of the goods, the right to use of which is transferred, or the period for which such right to use has been transferred, whichever is later.

(3) If the life time of the goods referred to in sub-rule (2) is not ascertainable or the transfer of right to use such goods is made for short durations over a prolonged period of time, such life time shall be taken as ten years for the purpose of this rule.