Section 20 in Daman and Diu Value Added Tax Regulation, 2005
20. Effect of registration.
(1)If a certificate of registration is granted at any time after the commencement of this Regulation and -(a)the dealer holds trading stock for the purpose of sale, or for use as raw materials for the production of trading stock;(b)the dealer has paid 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 possesses sufficient proof of the amount of input tax in respect of the purchases,such dealer shall be entitled to a tax credit for the trading stock or raw materials held by the dealer on the date on which the certificate of registration come into force:Provided that the dealer shall 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 Regulation.(2)For the purposes of sub-section (1), the amount of the tax credit shall be the least of the following, namely: -(a)the amount of input tax disclosed in the proof referred to in clause (d) of sub-section (1); or(b)the tax fraction of the cost of the goods; or(c)the tax fraction of the fair market value of the goods at the time of registration; or(d)the amount specified under sub-section (3) of section 9.(3)Where the registered dealer specifies in his books of account the turnover on the basis of amounts received and amounts paid, he shall exclude from his turnover -(a)any amount received after he has been granted a certificate of registration in respect of sales made and such amount relates to the period during which he had not been granted a certificate of registration under this Regulation; and(b)any amount paid after he is registered in respect of purchases made and such amount relates to the period during which he had not been granted a certificate of registration under this Regulation.
