Section 11(5) in The Kerala Value Added Tax Act, 2003
(5)No input tax credit shall be allowed for the purchases, -(a)from an unregistered dealer or from a dealer not liable to tax under section 6 or from a dealer whose registration has been cancelled;(b)from a dealer paying presumptive tax under sub- section (5) of section 6;(c)from a dealer paying compounded tax under Section 8.(d)of goods from outside the State in the course of inter State trade or commerce or otherwise in respect of tax paid on such purchase;(e)of goods which are used in the manufacture, processing or packing of goods specified in the First Schedule and the Fourth Schedule;(f)of goods specified in the Fourth Schedule;(g)of goods, which are used, as fuel in motor vehicles or vessels or stores;(h)of motor vehicles where such motor vehicle is sold as a used motor vehicle except where such motor vehicle is purchased as a used motor vehicle.Explanation. - For the purpose of clause (g) "stores" shall not include spare parts or tools in relation to any goods to which the provisions of this section applies(i)(Omitted)(j)which relates to goods sold by a principal through his agent in respect of which the principal has claimed input tax credit or vice versa;(k)of goods remaining unsold at the time of closure of business;(l)of goods which are used in the manufacture, processing or packing of goods, where such manufactured, processed or packed goods remain unsold at the time of closure of business;(m)of goods where tax invoice in the prescribed form is not available with the dealer or there is evidence that the same has not been issued by the selling dealer;(n)by a dealer who is exempted from payment of tax; (o) of goods notified under clause (x) of section 2.Provided that where a dealer remits differential tax in accordance with the provisions of the Act, he may, for the period up to 30 September 2010, issue debit note for the tax amount subsequently remitted, to the purchasing dealer to claim input tax credit to the extent of the tax covered in the debit note subject to such condition as may be prescribed.
