Section 10 in Daman and Diu Value Added Tax Regulation, 2005
10. Adjustment to tax credit.
(1)Where any purchaser has been provided by the seller with a credit note or debit note under section 51 or if he returns or rejects goods purchased, as a consequence of which the tax credit, claimed by him in any tax period in respect of which the purchase of goods relates, becomes short or excess, he shall compensate such shortfall or excess by adjusting the amount of the tax credit allowed to him in respect of the tax period in which the credit note or debit note had been issued or goods are returned.(2)If goods which have been purchased were, -(a)intended to be used for any of the purposes specified under sub-section (1) of section 9 but are subsequently used, fully or partly, for purposes other than those specified under the said sub-section; or(b)intended for purposes other than those specified under sub-section (1) of section 9, but are subsequently used, fully or partly, for any of the purposes specified in the said sub-section,the tax credit claimed in respect of such purchase shall be reduced or increased, as the case may be, for the tax period during which the said utilization has taken place.(3)Where -(a)the goods were purchased by a dealer;(b)the dealer claimed a tax credit in respect of the goods, and the amount of tax credit has not been reduced under sub-section (6) of section 9; and(c)the goods are exported from Daman and Diu, other than by way of a sale, to a branch of the dealer or to a consignment agent,the dealer shall reduce, by the proportion prescribed under subsection (6) of section 9, the amount of tax credit initially claimed by him.(4)If goods, which have been purchased by a dealer, -(a)were intended to be used for any of the purposes specified under sub-section (1) of section 9; and(b)are subsequently used as a part of structure of a building owned or occupied by him, the tax credit claimed in respect of such purchase shall be reduced in the tax period during which such use takes place.
