(1) Within a period of four months of the commencement of this Regulation, all

registered dealers desirous to claim the tax credit referred to in sub-section (2), shall furnish to the Commissioner a

statement, in the form as may be prescribed, containing details of

their trading stock, raw materials and packaging materials for trading stock (in this section referred to as "opening stock") which-

1. (a) is held in Daman and Diuonthe dateofthe commencement ofthisRegulation;

1. (6) was purchased by the dealer after the 1" day ofApril, 2004.
2. (2) If-
   • (a) the dealer has hmished the statement referred to in sub-section (1); Time at which turnover, turnover of purcbsses and adjustmu arise. Provisions of this Ctupta to ovsnidc pmvisions of Chapfa II. Trahncnt of stock bmught fwd during tnosition. SERIES - I NO. : 05 DATED laTH AUGUST, 2005.
3. (6) the tax has been paid in respect of opening stock in accordance with the provisions of the

Daman and Diu Sales Tax Act, 1964, as it stood before its repeal by 4 of 1964.

section 106, at the point specified by the Government under section 8 of the said Act at full rate of tax specified in the Schedules to that Act; and

1. (c) the opening stock has been purchased by the dealer fiom a registered dealer for any of the purposes as are specified in sub-section
   • (I) of section 9, the amount of tax paid under the Daman and Diu Sales Tax Act, 1964, as it stood before its 4 of 1964. repeal by section 106, on such opening stock, determined in such manner and subject to such conditions and restrictions and to the extent as may be prescribed, shall be credited to the registered dealer as a tax credit under section 9: Provided that no tax credit under this section shall be allowed unless the dealer has in his possession, invoices issued by a dealer registered under the Daman and Diu Sales Tax

Act, 1964, as it stood before its repeal by section 106, in respect of the purchases of such

4 of 1964. stock: Provided further that thedealer shall beeligible to claim the entireamount ofcredit to which he is entitled ifsuch entire credit is indicated and claimed in a single statement, which accompanies a return furnished under this Regulation.

1. (3) No fax credit under sub-section (2) shall be claimed- '
   • (a) for finished goods manufactured out of raw material or capital goods on which tax had been paid;
   • (b) for any goods, which were taxable at last point under the Daman and Diu SalesTax Act, 1964 as it stood before its repeal by section 106, held at the time ofthe 4 of 1964. commencement of this Regulation; I
   • (c) in any statement furnished aAer the expiry of four months after the commencement ofthis Regulation; or
   • (d) for opening stock which is held outside Daman and Diu.
2. (4) Every dealer, desirous to claim atax credit for more than one lakh rupees in respect of the opening stock

referred to in sub-section (I), shall furnish alongwith the statement a

certificate signed by an accountant in the prescribed form certiwing that the net credit claim specified in such statement is true and correct.

1. (5) Notwithstanding anything contained in section 3, if-
   • (a) a person was registered as a dealer under the Daman and Diu SalesTax Act, 1964, as it stood before its repeal by section 106; 4 of 1961.
   • (b) the pecson is not registered as a dealer under this Regulation in pursuance of

section 24, and such person has not made an application for grant of

certificab of registration as a dealer within one month of the date of the commencement of this Regulation; and

1. (c) on the date ofthe commencement ofthis Regulation, the dealer held opening stock of finished goods in respect of which tax has not been paid under the Daman and Diu Sales Tax Act, 1964, as it stood before its repeal by section 106, 4 of 1964. the person shall be liable to pay tax under this Regulation at the rate or rates specified in section 4 on the fair market value of the opening stock of finished goods held on the date of the commencement of this Regulation.

1. (6) The tax due under sub-section (5) shall be paid within two months fiom the date of the commencement ofthis Regulation. SERIES - I No. : 05 DATED lsnl AUGUST, 2005. - IS.(/) This section applies where--
   • (a) a registered dealer sells used goods;
   • (b) the registered dealer has purchased goods froma resident seller who was not registered under this Regulation;
   • (c) the goods were purchased either as trading stock for re-sale without any alteration, or for use as raw materials; (4 the registered dealer is liable to tax under section 3 on the sale ofthe goods or the goods which were manufactured after use of such goods as raw material or part of such goods so manufactured, as the case may be; and
   • (e) the registered dealer has sufficient proof of the amount paid for the goods.
2. (2) Subject to the provisions ofsub-section (I), the registered dealer shall be entitled to an amount of tax credit which shall be the lowest of the following, namely:-
   • (a) the input tax borne by the seller who was residing in Daman and Diu when he purchased the goods;
   • (b) the tax fraction of the initial cost of the goods to the seller residing in the Daman and Diu;
   • (c) the tax fraction of the fair market value or the goods at the time of their purchase by the registered dealer; (4 the tax fraction of the consideration paid by the registered dealer for the goods.
3. (3) Where the amount paid by the registered dealer for thegoods exceeds two thousand rupees, the tax credit shall be allowed in the tax period during which such goods are sold by the registered dealer or the goods into which they have been used are sold by the registered dealer. .