Effect of registration

20 Effect of registration |Rule: 10 Form: 19 ‘If at the time at which an unregistered dealer’s registration takes effect after the commencement of this Act and — (a) the dealer holds trading stock for the purpose of sale, or for use as raw materials for the production of ' [finished goods]; (b) the dealer has borne input tax on the purchase of the trading stock or raw materials; (c) the dealer furnishes a statement of its trading stock and raw materials in the prescribed form to the Commissioner; and (d) the dealer holds adequate proof of the amount of input tax in respect of the purchases; the dealer shall be entitled to a tax credit for the trading stock or raw materials held by the dealer on the date that the dealer’s registration takes effect; PROVIDED that the dealer must claim the entire amount of tax credit to which he is entitled in a single claim, which accompanies the first return furnished by the dealer under this Act. Explanation I.- This section applies where goods have borne tax imposed after the commencement of this Act; Explanation II.- Section 14 deals with goods which have borne sales tax prior to the commencement of this Act. For the purposes of sub-section (3) of section 9 of this Act, the amount of the tax credit shall be the least of - (a) the amount of input tax disclosed in the proof referred to in clause (d) of sub-section (1) of this section; (b) — the tax fraction of the cost of the goods; (c) the tax fraction of the fair market value of the goods at the time of registration; or (d) such amount as may be prescribed. Where the registered dealer accounts for turnover on the basis of amounts received and amounts paid, he shall exclude from his turnover - (a) any amount received after he is registered in respect of sales made while he was unregistered; and (b) any amount paid after he is registered in respect of purchases made while he was unregistered. ' Substituted for the words “trading stock” vide DVAT (Amendment) Act, 2005; No. F,14(6)/LA-2005/112, dated 28.03.2005 w.e.f. 01.04.2005.