Rule 40
Other Provision Relating To The Deduction
(1) In case where the goods on which tax has been deducted are in stock and Tax Officer wishes to see or count them, the taxpayer has to let him see and count them. If, in seeing or counting such goods, the Tax Officer does not find
such goods to have been used in taxable transaction or to be kept in stock; such goods shall be deemed to have been sold at the prevailing market price.
(2) The Tax Officer may give order to the concerned tax payer to pay the tax payable as the goods sold pursuant to Sub-rule (1). Such tax amount has to be paid along with the tax return for such month as may be specified by the Tax Officer. Provided that, if, in the opinion of the Tax Officer, such tax cannot be recovered if it is not recovered immediately, he may require the taxpayer to pay it immediately.
(3) In cases where any tax payer has carried on transaction of both the taxable goods or services and non-taxable goods and services, such tax payer shall be entitled to deduct only the tax paid on purchase of import directly related with the taxable goods or services.
(4) In cases where a tax payer who carries on transactions of both the taxable and non-taxable goods and services fails to establish direct relation of the purchased or imported goods with the sale of the taxable goods or services pursuant to Sub-rule (3), such taxpayer may deduct the tax paid on purchase or import in proportion of the value of taxable transaction out of the total value of sale.
(5) If the Tax Officer thinks that the tax as referred to in Sub-rule 4 cannot be computed proportionately, he may seek direction from the Department for its computation with another alternative method.
such goods to have been used in taxable transaction or to be kept in stock; such goods shall be deemed to have been sold at the prevailing market price.
(2) The Tax Officer may give order to the concerned tax payer to pay the tax payable as the goods sold pursuant to Sub-rule (1). Such tax amount has to be paid along with the tax return for such month as may be specified by the Tax Officer. Provided that, if, in the opinion of the Tax Officer, such tax cannot be recovered if it is not recovered immediately, he may require the taxpayer to pay it immediately.
(3) In cases where any tax payer has carried on transaction of both the taxable goods or services and non-taxable goods and services, such tax payer shall be entitled to deduct only the tax paid on purchase of import directly related with the taxable goods or services.
(4) In cases where a tax payer who carries on transactions of both the taxable and non-taxable goods and services fails to establish direct relation of the purchased or imported goods with the sale of the taxable goods or services pursuant to Sub-rule (3), such taxpayer may deduct the tax paid on purchase or import in proportion of the value of taxable transaction out of the total value of sale.
(5) If the Tax Officer thinks that the tax as referred to in Sub-rule 4 cannot be computed proportionately, he may seek direction from the Department for its computation with another alternative method.