Section 16(1) in The Bihar Value Added Tax Act, 2005
(1)Subject to the provisions of this Act, an input tax credit as provided in this section shall be claimed by a registered dealer, subject to such conditions and restrictions as may be prescribed, on sales of goods in the following circumstances, namely:-(a)when a registered dealer purchases any input within the State of Bihar from another registered dealer after paying him the tax as specified under section 14, he shall claim credit of the input tax in the manner prescribed, if the goods are sold within the State or in the course of inter-State trade and commerce;(b)when a registered dealer-(i)purchases any input within the State from another registered dealer after paying him the tax under section 14, or(ii)purchases any input and pays tax on such purchase under section 4 of the Act, and consumes such goods in the manufacture of any goods mentioned in clause (a), (b) and (d) of section 14, he shall claim credit of the said input tax in the manner prescribed, if the goods so manufactured are sold within the State of Bihar or in the course of inter-State trade and commerce;(c)when a registered dealer purchases any capital goods within the State from another registered dealer after paying him the tax as specified under section 14, and uses such goods in the manufacture of any goods mentioned in clauses (a), (b) and (d) [sub-section (1) of] [Inserted by Act No. 8 of 2007.] of section 14 and sells the manufactured goods within the State of Bihar or in the course of inter-State trade or commerce, or otherwise, he shall claim and be allowed, in such manner as may be prescribed, credit of the amount of input tax;(d)when a registered dealer holds in stock, on the 1st day of April, 2005, such goods as have been purchased by him on or after the 1st day of April, 2004 and which have suffered the incidence of tax under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94 and-(i)he sells such goods within the State of Bihar or in the course of inter-State trade and commerce, or(ii)he consumes such goods in the manufacture of any goods mentioned in clauses (a), (b) and (d) of section 14 and the goods so manufactured are sold within the State of Bihar or in the course of inter-State trade and commerce, he shall claim credit of the input tax in the manner prescribed;(e)when a registered dealer purchases any input within the State of Bihar from another such dealer after paying him the tax as specified under section 14 at a rate higher than four per cent. and transfers such goods or goods manufactured from such goods to another dealer outside the State of Bihar, he shall be allowed credit of such tax in excess of four per cent. in the manner as may be prescribed:[Provided that if the claim for input tax credit under clause (a) or clause (b) or clause (c) or clause (d) or clause (e) for any month exceeds the output tax for the same month, such excess shall be carried forward for adjustment against the output tax of subsequent months, not being a month later than the last month of the financial year, and any amount of input tax that remains unadjusted in terms of the return under sub-section (3) of Section 24 shall be refunded, subject to the provision of Sections 68, 69 and 71 of this Act, within three months following the month in which the return required under sub-section (3) of Section 24 and the report under sub-section (2) of Section 54, if required, is furnished:] [Substituted by Act No. 8 of 2007.]Provided further that input tax credit in respect of capital goods shall be allowed in the manner and over such period, [not exceeding two financial years from the year of their acquisition] [Substituted 'not exceeding thirty-six months from the date of their acquisition' by Act No. 8 of 2007.], as may be prescribed:Provided also that no credit of input tax shall be allowed in respect of capital assets purchased or acquired before the commencement of this Act.
