43. Input Tax Credit on Transitional Stock in case of dealers registered under the Act with effect from the appointed day. -

(1) Opening stock of goods used for the purpose of manufacture, resale, or execution of works contract, but other than capital goods held as on the appointed day purchased on or after the 1^st April, 2004, will be eligible for input tax credit:

Provided that goods for which no price has been paid or is payable, will be excluded from the opening stock.

Provided further that the dealers who fail to comply with the provisions of section 8 of the Act shall not be eligible for input tax credit under this rule.

(2) Only goods that have suffered tax under section 5 of the Nagaland Sales Tax Act, 1967, prior to the appointed day and are taxable under the Act, will be eligible for input tax credit.

(3) Inputs purchased on or after 1^st April, 2004, for manufacturing, and the finished or semi-finished goods so manufactured using such inputs, and remaining in opening stock as on the appointed day, will be allowed input tax credit:

Provided that while ascertaining the value of raw materials, semi-finished or finished goods, accepted method of accounting shall be followed by a dealer, and the Commissioner or the officer authorized under sub-section (1) of section 3 of the Act shall be satisfied that there is consistency in the method of determination of valuation by such dealer.

(4) Input tax credit shall be available on tax paid or payable on leased rentals accrued on or after the appointed day, on goods acquired by a dealer on lease before the appointed day.

(5) The claim for input tax credit should be supported by proof regarding payment of tax by the purchasing dealer.

(6) The rate to be considered for credit will be the actual rate at which taxes were paid at the time of purchase, irrespective of the rate under the Act.

(7) No input tax credit will be given in the first three months, and the credit will be given in equal instalments in the next six months.

(8) The registered dealer shall, within 30 days from the appointed day, submit to the appropriate assessing authority a list of goods lying in stock with all the particulars in the following manner:

CLOSING STOCK INVENTORY

as on________________________

Name of the dealer:

Address:

Registration Certificate No:

[Under the Nagaland Value

Added Tax Act, 2005].

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

(9) Where the value of goods declared in the closing stock inventory referred to in sub-rule (8) exceeds twenty lakh rupees, the same should be certified by a practicing Chartered Accountant enrolled as a member of the Institute of Chartered Accountants of India.

(10) If any stock eligible for input tax credit under sub-rule (1) is sold within the first three months, documents such as cash memo, bill or tax invoice evidencing purchase and sale of such stock should be preserved by the registered dealer for inspection and verification by the appropriate assessing authority or any other officer appointed under sub-rule (1) of rule 3 of the Act.

(11) Opening stock of semi-finished goods or goods of a manufacturer will be eligible for input tax credit.

(12) Notwithstanding anything contained in sub-rule (6) and elsewhere in the rules, where no tax under section 5 of the Nagaland Sales Tax Act, 1967, was charged by a manufacturer registered under that Act on sale of goods manufactured by him, no input tax credit on opening stock of goods as on the appointed day of such goods will be available to the buyer of such goods.

(13) Recovery of input tax credit.- Where the input tax credit has been wrongly availed of or utilized or tax has not been paid by the selling dealer for any reason whatsoever, such credit along with the interest shall be recoverable from the person availing such input tax credit, and the provisions of sections 42 and 43 of the Act shall apply mutatis mutandis for effecting such recoveries.