Section 21(9) in The Police Enhanced Penalties Ordinance, 2005
(9)No input tax credit under sub-section (1) shall be claimed or be allowed to a registered dealer -(i)in respect of any taxable goods under the Act purchased by him from another registered dealer for resale but given away by way of free sample or gift;(ii)who is liable to turnover tax at a percentage of the turnover of sales, in lieu of tax, as provided under section 25 ;(iii)in respect of capital goods as specified in Schedule 'E ';(iv)in respect of goods brought from outside the State against the tax paid in other States;(v)in respect of stock of goods remaining unsold at the time of closure of business;(vi)in respect of goods purchased on payment of tax, if such goods are not sold because of any theft or if such goods get destroyed ;(vii)where the tax invoice is not available with the dealer, or there is evidence that the same has not been issued by the selling dealer from whom the goods are purported to have been purchased;(viii)in respect of goods purchased by him for the period his certificate of registration is under suspension ; and(ix)in respect of sale of goods exempt from tax as specified in Schedule 'A';(x)who gets the benefit of tax remission.] [Inserted vide J&K VAT (Amendment) Act, 2006]
