State Act

The Daman and Diu Value Added Tax Regulation 2005

This Act was repealed on 26 January 2020 by the Dadra and Nagar Haveli and Daman and Diu (Repeal) Regulation, 2020 (5 of 2020), s.2(1) and Schedule item (1); it may still apply to matters that began before then.

15.(1) This section applies where— (a) a registered dealer sells used goods; (b) the registered dealer has purchased goods from a 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; (d) the registered dealer is liable to tax under section 3 on the sale of the 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) Subject to the provisions of sub-section (1), 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 of the goods at the time of their purchase by the registered dealer; (d) the tax fraction of the consideration paid by the registered dealer for the goods. (3) Where the amount paid by the registered dealer for the goods 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.