In exercise of the powers conferred by sub-sections (1) and (2) of section 30 of the Tamil Nadu Value Added Tax Act, 2006 (Tamil Nadu Act 32 of 2006), the Governor of Tamil Nadu hereby makes a reduction from 12.5% to 4% in respect of tax payable under that Act by any dealer other than dealer in automobiles, including commercial vehicles, two wheelers and three wheelers, on the sale of used motor vehicles which have suffered tax already either under the erstwhile Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) or the Tamil Nadu Value Added Tax Act, 2006 (Tamil Nadu Act 32 of 2006) and registered within the State of Tamil Nadu under the Motor Vehicles Act, 1988 (Central Act 59 of 1988), subject to the condition that the dealer shall not be eligible to avail input tax credit.

2. The notification shall come into force with effect on and from the 1st April 2008.