(1) A dealer who claims that any amount of his turnover should be exempted from tax on account of the goods being specified in Part E of Schedule II and for the sales made at the first stage of sale in the State under subsection (3) of Section 9 of the Act, shall in respect of such claim be substantiated by the authority prescribed by examining, the purchase order, if any, the original copy of the tax invoice, cash memoranda or bills issued to him by the selling dealer and a true Declaration in Form JVAT 403 generated electronically through departmental online system, evidencing that the goods in question have already been subjected to tax on the first point of their sale in the state of Jharkhand.

(2) Any VAT dealer, who claims Input Tax Credit under sub-section (4) of Section 18 of the Act and his Output Tax payable requires the Input Tax Credit, for the sales made at the stage(s) under sub-section (1) of Section 9 of the Act, shall in respect of such claim be substantiated by the authority prescribed by examining the original copy of tax invoice and a true Declaration in Form JVAT 404 generated electronically through departmental online system, evidencing that the goods in question have already been subjected to Tax at the preceding stage of their sale in the State of Jharkhand.

(3) Declaration in Form JVAT 403 and JVAT 404 in respect to one purchasing dealer shall be generated electronically through departmental online system on the basis of related details furnished by a selling dealer along with returns for the sale made to such purchasing dealer during a year. In case of such online generated declarations provisions of subsection (9) of Section 60 shall apply.

(4) (a) In case of a registered dealer being Manufacturer or the Importer of such goods and sells such goods as specified in sub-section (2) of Section 9 and Notification issued thereunder, and recovers tax from its purchasing registered dealer at the full rate or at such increased rate, on the Maximum Retail Price of such goods; Form JVAT 410 shall be generated electronically through departmental online system.

Provided that one Declaration Form in respect of one purchasing registered dealer shall be generated on the basis of related details furnished by a selling dealer along with returns for the sale made to such purchasing dealer during a year. In case of such online generated declaration provisions of sub-section (9) of Section 60 shall apply.

(b) In case of registered dealer being reseller of such goods sold, as specified in sub-section (2) of Section 9 and Notification issued thereunder, and who recovers tax from its purchasing dealer at full rate or at such increased rate, on the Maximum Retail Price, paid by him at immediately preceding stage, Form JVAT 411 shall be generated electronically through departmental online system.

Provided that one Declaration Form in respect of one purchasing dealer shall be generated on the basis of related details furnished by a selling dealer along with returns for the sale made to such purchasing dealer during a year. In case of such online generated declaration provisions of sub-section (9) of Section 60 shall apply.

(5) The aforesaid Declaration(s) Form shall not be transferable.

(6) The declaration forms as prescribed hereinabove shall be furnished within the period, provided in the proviso of section 35 of the Act, failing which the purchasing dealer shall be liable for payment of interest on tax due @2% calculated from the date, the tax payable in respect of the claim has become due, to the date of its payment.

Provided that if the prescribed authority is satisfied that the person concerned was prevented, by sufficient cause, from furnishing such declaration within the aforesaid time, that authority may allow such declaration to be furnished within such further time as the authority may permit.

Provided further that if the prescribed authority is satisfied that there exists sufficient reason for doing so, he may allow more than one declaration form instead of one for a year, as prescribed in this rule, to be submitted by such person.