In exercise of the powers conferred by sub-section (3) of section 8 of the Rajasthan Value Added Tax Act, 2003 (Rajasthan Act No.4 of 2003), the State Government being of the opinion that it is expedient in the public interest so to do, hereby exempts from payment of tax the registered dealers dealing in used cars, to the extent the rate of tax exceeds 1%, subject to the following conditions, namely :-

1. That no input tax credit shall be claimed by the dealer in respect of purchase of such goods which are used in the used car sold; and

2. That such car was purchased initially, from the registered dealer of the State and is registered in the State under the provisions of Motor Vehicles Act, 1988 (Central Act 59 of 1988) prior to its sale.