16. Tax credit under section 12

(1) The statement referred to in sub-section (1) of section 12 shall be furnished in Form 108. The calculation of tax credit under section 12 shall be made in the manner provided in Form 108

(2) The statement under sub-rule (1) shall be furnished by the dealer on or before the 30th May, 2006 to the Commercial Tax Officer under whose jurisdiction registered dealer is required to furnish return under rule 19.

Provided that where the dealer has filed an application for permission to pay lump-sum tax under section 14 within the prescribed period and his application has been rejected because of undertaking any of the activities mentioned in clauses (I) or (II) of the proviso to clause (a) of sub-section (1) of section 14 and he has not furnished the statement in Form 108 within the prescribed period, such dealer shall furnish the statement under sub-rule (1) on or before 30th   june 2007.

(3) The tax credit to be claimed under section 12 shall be subject to the fulfillment of the following conditions, namely:-

(a) tax credit may be claimed in respect of the taxable goods, which were purchased from a dealer registered under the earlier law,

(b) dealer shall have in his possession bills or invoices issued by the selling dealer indicating inter-alia, the registration number of the selling dealer, the price of goods and the amount of tax, if charged separately, (c) particulars of goods for which tax credit is claimed have been entered in the books of accounts of the dealer,

(d) dealer has furnished the returns for the period up to the 31st March 2006 in accordance with the provisions of the earlier law,

(e) provisions of sections 11 and 12 are complied with:

Provided that where the tax credit claimed under this rule has been determined after verification is less than the amount claimed by the dealer, such dealer shall be informed accordingly within ten days of the verification under this sub-rule.

(4) Where the amount of tax on the goods purchased is not indicated separately in the bills or invoices issued by the selling registered dealer, the tax credit referred to in sub-section (5) of section 12 shall be calculated in the following manner, namely:-

Formula: 9 P/10 multiplied by R / 100+R

 (where 'P' means the purchase price of the goods and 'R' means the rate of sales tax or of general sales tax (whichever has not been recovered separately), applicable to the respective taxable goods under the earlier law at the relevant time of purchases thereof).

(5) A registered dealer may claim tax credit in respect of the amount of purchase tax paid by him under section 15A of the Gujarat Sales Tax Act, 1969 subject to the fulfillment of the following conditions, namely:-

(a) registered dealer was holding recognition granted to him under section 32 of the Gujarat Sales Tax Act, 1969 at the time purchases were effected and on which purchase tax was paid,

(b) registered dealer has in his possession the proof for payment of purchase tax so paid,

(c) registered dealer has maintained the counter foils of Form 18C or Form 19 issued by him in the manner prescribed under the earlier rule.

(6) Subject to the p rovisions of sections 11 a nd 1 2 and these rules, the tax credit admissible under sect ion 12 shall be claimed by the registered dealer in his returns as provided here under : -

(a) Every registered dealer who is required to furnish quarterly returns un der sub-rul e (3A) of rule 19 may claim tax credit in his quarterly return ending on 30 th June 2006, to the extent of rupees thirty thousand and for the remaining amount of tax credit, in the quarterly return ending on the 30th September 2006.

(b) Every registered dealer who is required to furnish monthly return under sub-rule (2) of rule 19 may cla im tax credit in his monthly return starting from tax period of April, 2006 to September, 2006, in six equal instalments:

Provided  that the Commissioner may, for the reasons to be recorded in writing, allow with such conditions he thinks fit, any dealer or certain class of dealers to claim tax credit under section 12 before the period specified above.