Section 13(5) in Telangana Value Added Tax Act, 2005
(5)No input tax credit shall be allowed on the following,-(a)works contracts where the VAT dealer pays tax under the provisions of clauses (b) [***] [Omitted by Act No.21 of 2011.] and (d) of subsection (7) of section 4;(b)transfer of a business as a whole;(c)sale of exempted goods except when such goods are sold in the course of export or exported outside the territory of India;(d)exempt sale;(e)transfer of exempted goods on consignment basis or to branches of the VAT dealer outside the State otherwise than by way of sale;(f)[ the purchase of any goods by an agent for supply of such goods to his resident principal;] [Added by Act No.28 of 2008.](g)[ the transactions on which VAT dealer pays tax under sub-section (8A) [or sub-section (8B)] [Added by Act No.4 of 2009.] of section 4 of the Act;(h)the supply or sale of goods, on which a VAT dealer pays tax under clause (b) and (d) of sub-section (9) of section 4 of the Act.](i)[ transactions on which tax is paid or payable under sub-section (11) of section 4.] [Added by Act No.21 of 2011.][(5-A) Notwithstanding anything contained in subsection (5), the resident principal, who receives the goods purchased on his behalf by his agent, is eligible to claim input tax credit on such goods subject to the possession of a declaration in the Form, as may be prescribed.] [Inserted by Act No.28 of 2008.]
