Section 11(2) in The Kerala Value Added Tax Act, 2003
(2)In respect of capital goods purchased by a dealer, the value of which exceeds such limit as may be prescribed, input tax credit shall be allowed over a period of three years from the date of commencement of commercial production or from the date from which the capital goods are put to use, whichever is later, in such manner and subject to such conditions as may be prescribed.Provided that input tax credit on capital goods for industrial units including those which have undertaken expansion, diversification or modernization shall be allowed over a period twelve months from the date of commencement of commercial production or from the date from which the capital goods are put to use, whichever is earlier from 1st day of April, 2006.Provided further that no input tax credit shall be allowed with respect to capital goods used exclusively for the manufacture of goods having no taxable consequence under this Act or the Central Sales Tax Act, other than zero rated sales and in cases where it is only partly used for such purposes, input tax credit shall be proportionately disallowed to that extent.
