In exercise of powers conferred by clause (a) of sub-section (8) of section 4 of the Uttaranchal Value Added Tax Act, 2005 (Act No..27 of 2005) read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P.Act No.1 of 1904), (as applicable in the State of Uttaranchal), the Governor is pleased to Order that with effect from the date of publication of this notification the tax on the sale of Drugs, medicines and pharmaceutical preparations(Allopathic, Ayurvedic, Homeopathic and Unani) including vaccines syringes and dressings, medicated ointments produced under drugs license and light liquid paraffin of IP grade shall be payable at the point of sale by Manufacture or sale by Importer at the rate specified under section 4 of the said Act, on the Maximum Retail Price (M.R.P.) instead of at its actual sale price, subject to the following conditions and restrictions-

(1) The dealer paying tax at M.R.P. shall, in addition to mentioning in the Sale Invoice the actual sale price, separately indicate in the Sale Invoice the M.R.P. on which tax has been charged.

(2) Any dealer purchasing from such dealer the goods on which tax has been paid on M.R.P.shall not be entitled to any Input Tax Credit on such purchases.

(3) Any dealer purchasing from such dealer the goods on which tax has been paid on M.R.P.shall not be liable to pay tax on his sale of such goods.

(4) The dealer selling goods on payment of tax on M.R.P.shall indicate on the Sale Invoice that "TAX IS PAID ON M.R.P." and the subsequent dealers selling such goods after purchase from such dealer, shall indicate on the Sale Invoice that "TAX HAS EARLIER BEEN PAID ON M.R.P." and all such dealers shall print on the top of the Sale Invoice 'INVOICE FOR TAX ON M.R.P."