Section 19(2) in Tamil Nadu Value Added Tax Act, 2006
(2)Input tax credit shall be allowed for the purchase of goods made within the State from a registered dealer and which are for the purpose of -(i)re-sale by him within the State; or(ii)use as input in manufacturing or processing of goods in the State; or(iii)use as containers, labels and other materials for packing of goods in the State; or(iv)use as capital goods in the manufacture of taxable goods.(v)[Omitted] [This was omitted by Act No 5 of 2015 Tamil Nadu Value Added Tax (Amendment) Act, 2015 dated 31st March 2015.] sale in the course of inter-State trade or commerce falling under sub-section (1) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956);](vi)sale in the course of inter-State trade or commerce falling under sub-section (1) and (2) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956)(vi)Agency transactions by the principal within the State in the manner as may be prescribed[Omitted] [This was omitted by Act No 5 of 2015 Tamil Nadu Value Added Tax (Amendment) Act, 2015 dated 31st March 201.][Provided that Input Tax Credit shall be allowed in excess of three per cent of tax for the purpose specified in clause (v).] [Added by Section 2(1) of the Amendment Act 28 of 2013, Notified to come into force with effect from 11th November vide G.O.No139 dated 8thNovember 2013.]
