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 in the rate of tax from 12.5% to 4% upto 11.7.2011 and from 14.5% to 5% from 12.7.2011 in respect of tax payable under the said Act by any dealer on the sale of Generating sets (Gen-sets) used for producing electricity in the State.

2. The reduction hereby made shall be deemed to have come into force on the 1st April 2008 and shall remain in force upto and inclusive of the 6th December 2012, subject to the following conditions:-

(i) There shall be no refund of tax already collected at the rate of 12.5% or 14.5%, as the case may be, on the sale of Generating sets between 01.04.2008 and 06.12.2012, and remitted to the Government.

(ii) Input Tax Credit shall be allowed at 12.5% from 01.04.2008 upto 11.07.2011 and at 14.5% from 12.07.2011 upto 06.12.2012 on the tax paid in the State on the purchase of Generating sets during the above said period, provided tax is collected at the rate of 12.5% or 14.5%, as the case may be, and remitted to Government on the sale of Generating sets in the State.

(iii) If the tax was collected at the rate of 12.5% or 14.5%, as the case may be, on the sale of Generating sets in the State between 01.04.2008 and 06.12.2012 but remitted to the Government at the rate of 4% or 5%, as the case may be, the difference in tax shall be remitted to the Government.

(iv) The input tax credit availed shall be restricted to 4% or 5%, as the case may be, if tax is paid at the rate of 12.5% or 14.5% on the purchase of Generating sets but collected and remitted to the Government at the rate of 4% or 5% on the sale of Generating sets in the State.

S. K. Prabakar.

Principal Secretary to Government.