Section 10(5) in The Delhi Value Added Tax Act, 2004
(5)[ Where the goods which have been purchased by a dealer are sold at a price lower than the price at which it was purchased by the dealer, the tax credit on such purchases shall be reduced proportionately in the tax period during which the goods are sold.Explanation : The tax credit claimed on a particular purchase shall not exceed the amount of tax payable on its sale.] [Inserted by DVAT (Amendment) Act, 2009 (Act No. 1 of 2010), dated, 1-1-2010, w.e.f. 1-4-2010.]
