WHEREAS the State Government is satisfied that it is expedient so to do in public interest;

NOW, Therefore, in exercise of the powers conferred by sub-section (6) 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 Uttarakhand and as amended from time to time) the Governor is pleased to order that with effect from the date of publication of this Notification in the Gazette, no tax shall be levied on the incentive bonus amount, proposed to be paid by the Government of India, Department of Food & Public Distribution for procurement of paddy during Kharif Marketing Season (K.M.S.) 2007-08 over and above the procurement price (M.S.P.) Fixed for the purchasew of paddy. No tax shall also be levied on sale of rice manufactured from such paddy to the extent of incentive bonus amount .