Rule 7 - Reduction of tax credit (Section 9(6), 9(9) and Section 10(3) - Delhi Value Added Tax Rules, 2005

7. Reduction of tax credit (Section 9(6), 9(9) and Section 10(3) 7 [ (1) For the purposes of sub-section (6) of section 9 and sub-clause (ii) of clause (c) of sub-section 3 of section 10, the tax credit shall be reduced in the following manner:- (a) in the case of goods specified in the Second Schedule, the tax credit shall be reduced by 100 percent; and (b) in the case of goods other than those specified in the Second Schedule, the tax credit shall be reduced by [ 2/R X 100 ] percents where R is the rate of tax applicable as per section 4. ] 10 [ Provided that in case of following goods, the tax credit shall be reduced by 100 percents: (i) Un-manufactured tobacco, tobacco and tobacco products in all forms such as cigarettes (irrespective of form and length), chewing tobacco, gutkha, cigars, hooka tobacco, khaini, zarda, surti, bidis etc.; (ii) All kinds of lubricants. ; and ] (2) Where a dealer has transferred any goods in the circumstances specified under sub-section (6) of section 9 and has made a reduction of tax credit by the prescribed percentage; he shall be entitled to claim the tax credit so reduced when he brings such goods back into Delhi for sale on which tax is payable under section 3 or for sale in the course of inter-state trade or commerce or for sale outside Delhi or for sale in the course of exports out of the territory of India, subject to the condition that the goods brought back to Delhi are the same goods as originally transferred 5 [ or the goods processed or manufactured out of the goods as originally transferred. ] (3) Where any goods or goods manufactured out of such goods are lost or destroyed, the dealer shall not be eligible to claim tax credit on such goods and the credit taken in any earlier tax period shall be reversed in the tax period in which goods are claimed to have been lost or destroyed. (4) For the purpose of sub-section (9) of section 9, the prescribed percentage of reduction of tax credit shall be 2 [2 percent]. 11 [(5) For the purposes of sub-section (10) of section 9 and sub-section (3) of section 10 , in case of following goods, the tax credit shall be reduced by {(R-2)100/R} percents, where R is the rate of tax applicable as per section 4 : (i) Un-manufactured tobacco, tobacco and tobacco products in all forms such as cigarettes (irrespective of form and length), chewing tobacco, gutkha, cigars, hooka tobacco, khaini, zarda, surti, bidis etc.; (ii) All kinds of lubricants.] ******************** Notes : 1. Has been substituted vide Notification No. F. 3(10)/Fin.(T E)/2008-2009/JS/Fin./351 dated 24/7/2008 before it was substituted vide Notification No. .F 3(2)/Fin(T E)/2007-08/(iv)/dsfte/353 dated 14/5/2007 as (1) For the purposes of sub-section (6) of section 9 and sub-section (3) of section 10, the tax credit shall be reduced by the following prescribed percentages:- (a) in the case of goods specified in the Second Schedule - 100 per cent (b) in the case of goods specified in the Third Schedule - 70 per cent (c) in the case of goods specified in the Fourth Schedule - 15 per cent (d) in the case of any other goods specified in clause (e) of sub-section (1) of section 4 - 24 per cent] 2. Has been substituted vide Notification No. F. 3(10)/Fin.(T E)/2008-2009/JS/Fin./351 dated 24/7/2008 before For the word and figure 4 per cent the word and figure 3 percent has been substituted vide Notification No. 3(2)/Fin(T E)/2007-08/(iv)/dsfte/353 dated 14/5/2007 ) 3. Substituted vide notification No. F. 3(27)/Fin (T E)/2009-10/JS Fin/195 dated 17-3-2010, earlier it was read as 50% Further Omitted vide Notification No.F.3(23)/Fin(Rev-I)/2011-12/DSIII/68, dated 27/01/2012, before it was read as:- 3 [ (e) Declared goods, as defined from time to time in Section 14 of the Central Sales Tax Act, 1956 (74 of 1956) - 50 per cent 4. Inserted vide notification No. F. 3(27)/Fin (T E)/2009-10/JS Fin/195 dated 17-3-2010 5. Inserted vide Notification No. F. 3(59)/Fin (T E)/2005-06/923Kha, Dated: 30.11.2005, w.e.f. 30.11.2005. 6. Inserted vide Notification No.F.3(15)/Fin.(Rev-I)/2012-13/dsVI/264 Dated 30/03/2013. 7. Substituted vide F.3(12)/Fin(Rev-I)/2015-2016/dsvi/650 before it was read as, 1 [(1) For the purposes of sub-section (6) of Section 9 and 6 [sub-clause(ii) of clause (c) of] sub-section (3) of Section 10, the tax credit shall be reduced by the following prescribed percentages: (a) In the case of goods specified in the Second Schedule - 100 per cent (b) In the case of goods specified in the Third Schedule 3 [ - 40 per cent ] (c) In the case of goods specified in the Fourth Schedule - 10 per cent (d) In the case of any other goods specified in the clause (e) of sub-section (1) of Section 4 - 16 per cent ] 3 [ (e) ************ ] 8. Inserted vide Not. F.3(21)/Fin(Rev-I)/2015-2016/dsvi/907 - Dated 12-11-2015. 9. Inserted vide Not. F.3(21)/Fin(Rev-I)/2015-2016/dsvi/907 - Dated 12-11-2015. 10. Substituted vide F.3(25)/Fin(Rev-I)/2015-2016/dsvi/954 - Dated 18-12-2015, before it was read as, 8 [ Provided that in case of cigarettes (irrespective of form and length), the tax credit shall be reduced by 100 percents. ] 11. Substituted vide F.3(25)/Fin(Rev-I)/2015-2016/dsvi/954 - Dated 18-12-2015, before it was read as, 9 [(5) For the purposes of sub-section (10) of section 9 and sub-section (3) of section 10, in case of cigarettes (irrespective of form and length), the tax credit shall be reduced by {(R-2) I00/R} percents, where R is the rate of tax applicable as per section 4.]