Section 20(1) in The Delhi Value Added Tax Act, 2004
(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] [Substituted for 'trading stock' by DVAT (Amendment) Act, 2005 (5 of 2005), w.e.f. 1-4-2005.];(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.
