The Gujarat Value Added Tax Act, 2003- Notifications
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Body NOTIFICATION NO. (GHN-83)VAT-2006-S.41(1)(2)-TH., Dated 19th July, 2006

WHEREAS the Government of Gujarat considers it necessary so to do in the public interest;

NOW, THEREFORE, in exercise of the powers conferred by sub-section (1) of section 41 of the Gujarat Value Added Tax Act, 2003 (Guj. 1 of 2005), the Government of Gujarat hereby remits the whole of the tax payable under section 7 of the Act on the sales of twisted filament yarns (including crepe yarn) manufactured by an independent twister subject to the following conditions, namely :-

(a)	The remission shall not be granted on the sales of twisted filament yarn manufactured from the filament yarn, which is purchased in the course of inter-state trade or commerce or in the course of import outside the territory of India or from a person who is not registered under the Act.
(b)	The independent twister proves to the satisfaction of the Commissioner that twisted yarn (including crepe yarn) is manufactured from filament yarn purchased in the State of Gujarat.
(c)	The independent twister proves to the satisfaction of the Commissioner that tax has been paid on the purchases of the filament yarn.
(d)	The independent twister shall not collect tax from his purchaser.
(e)	The independent twister shall not issue tax invoice but shall issued retail invoice in respect of sales of twisted filament yarns (including crepe yarn).
(f)	The independent twister shall maintain accounts of the receipt and use of the filament yarns in a manner required for the ascertainment and assessment of remission of the tax payable on the twisted filament yarn.
(g)	The independent twister shall not claim any tax credit under section 11 of the Act.
(h)	The independent twister shall have to file monthly return in accordance with the provisions of sub-rule (2) of rule 19.
(i)	The independent twister who is eligible for remission under this notification shall apply to the Commissioner on a plain paper stating complete details of his business and shall prove to the satisfaction of the Commissioner that he fulfils all the requirements laid down in this notification.

Explanation : For the purpose of this notification,

(1) An "independent twister" means a dealer engaged in the process of twisting of filament yarns.

(2) The phrase "filament yarn" means polyester, nylon or viscose filament yarn; polyester, nylon or viscose texturised yarn; or polyester, nylon or viscose crimped yarn which has not undergone the process of twisting.

(3) The phrase "twisted yarn" means the filament yarn, which has undergone the process of twisting by the independent twister.