(1) Every dealer -

(a) at the time of commencement of this Act -

(i) whose taxable turnover of sales during the year immediately preceding the commencement of this Act exceeded the taxable limit, or

(ii) who is registered or liable to be registered under the Tripura Sales Tax Act, 1976 or the Central Sales Tax Act, 1956, or

(b) to whom clause(a) does not apply, and

(i) whose taxable turnover first exceeds the taxable limit during any period of twelve consecutive months, or

(ii) who is registered as a dealer under the Central Sales Tax Act, 1956,

shall be liable to pay Value Added Tax (VAT) in accordance with the provisions of this Act.

Provided that the State Government may keep certain goods as listed in the schedule II(d) outside VAT which will be taxable in the first point of sale within the State without any tax credit at such rates as may be specified by the Government from time to time by notification in the Official Gazette.

Provided further that the rates of different items may be different.

(2) Every dealer is liable to pay tax under sub-section (1) on sales effected by him,

(a) in case of clause (a) of sub-section (1), with effect from the date of commencement of this Act;

(b) In case of sub-clause (i) of clause (b) of sub-section (1), with effect from the date immediately following the day on which his taxable turnover first exceeded the taxable limit during a period of any twelve consecutive months,

(c) in case of sub-clause (i) and (ii) of clause (b) of sub-section (1), with effect from the date of registration or the date on which he becomes so liable whichever is earlier.

(3) For the purpose of this Act, taxable limit means in relation to any dealer who: