Section 12(2) in Bihar Value Added Tax Rules, 2005
(2)The total amount of input tax credit to which a dealer is entitled during a month shall be the amount arrived at after applying the following Formula:ITC = O + C + I - RWhere,ITC = The total amount of input tax credit to which the dealer is entitled during the month;O = The tax paid, under the earlier law, on opening stock of such goods as had been purchased on or after 01.04.2004 but before 31.03.2005;C = The thirty-sixth part of the tax paid in respect of capital goods purchased on or after 01.04.2005;I = The tax paid on inputs purchased during the month, charged either in the bill or invoice or through a debit note issued to the purchasing dealer; andR = The amount of reverse credit, if any, incurred by the dealer during the month and computed in accordance with the provisions of rule 14 and rule 15.Provided that in case the aggregate of the reverse credit computed in respect of a month exceeds the input tax paid on inputs purchased during the month such excess shall be added to the output tax of the concerned month.
