The proposed amendment seeks to prescribe that:

Input tax in excess of 90% of out put tax for that tax period shall not be allowed. The remaining portion of input tax will allowed upon furnishing the statement along with the audited accounts duly certified by the auditors showing value addition less the limit prescribed on yearly basis in the 2nd month following the end of financial year.

Input tax related to acquisition of fixed assets shall be allowed as adjustment in 12 equal monthly installments after the start of production of new unit.

The Board may, by notification in the official Gazette, prescribe any other limit of input tax adjustment for any person or class of persons.

Any auditor found guilty of misconduct in furnishing the certificate mentioned in sub-section (2) shall be referred to disciplinary action.