Section 10(6) in Tripura Value Added Tax Act, 2004
(6)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 this Act purchased by him from another registered dealer for resale but give; away by way of free sample or gift;(ii)who has been permitted by the Commissioner for composition of tax at a percentage of the turnover of sales in lieu of VAT as provided under section 15;(iii)in respect of capital goods of traders in the initial year i. e. the input tax credit on capital goods would be confined to manufacturers;(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, destruction or damage for any reason;(vii)where the tax invoice is -(a)not available with the dealer, or(b)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 from a dealer whose certificate of registration has been suspended;(ix)in respect of goods used for transfer of stock other than by way of sale outside the State of Tripura;(x)in respect of sales exempt from tax as specified in Schedule III.(xi)in respect of raw materials used in manufacture or processing of goods where the finished products are despatched other than by way of sales:Provided that in respect of transactions falling under item (ix), input tax credit may be allowed on the tax paid in excess of 4% on the raw materials used directly in the manufacture of the finished products.
