Section 16 in Arunachal Pradesh Goods Tax Act, 2005
16. Second-hand goods.
(1)This section applies where -(a)are registered dealer sells second-hand goods;(b)the dealer has purchased goods from a resident seller who was not registered under this Act;(c)the goods were purchased either as trading stock for re-sale in an unmodified form, or as raw materials for incorporation or division into trading stock;(d)the dealer will be liable to tax under section 3 on the sale of the goods or the goods into which they were incorporated as the case may be;and(e)the dealer has adequate proof of the amount paid for the goods.(2)Where this section applies, the registered dealer will be entitled to a tax credit for the purposes of section 9 of the least of -(a)the input tax borne by the resident seller when he purchased the goods;(b)the tax fraction of the original cost of the goods to the resident seller;(c)the tax fraction of the fair market value of the goods at the time of their purchase by the registered dealer; or(d)the tax fraction of the consideration paid by the registered dealer for the goods.(3)Where the amount paid by the registered dealer for the goods exceeds Rupees two thousand, the tax credit shall be allowed in the tax period when the goods are sold by the registered dealer or the goods into which they have been incorporated are sold by the registered dealer.
