|
||||||||||||||||||
|
||||||||||||||||||
 |
|
||||||||||
|
| 20 Effect of registration | |
|
20 Effect of registration
(1) 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.
(2) 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.
(3) 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.
|
|
|
|||
|
|||
|