ORDER FINANCE DEPARTMENT Sachivalaya, Gandhinagar. Dated the 23rd July, 2008. GUJARAT VALUE ADDED TAX ACT, 2003 No. (GHN-36)VAT-2006-S.41(1)(8)-TH: 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 under section 7 of the Act, excluding additional tax payable under sub-section (1A) thereof, on the sales of goods by an eligible tourism unit, with effect from the appointed day, subject to the following conditions, namely: (1) The eligible tourism units shall be entitled to remission of tax excluding additional tax only for the balance amount and for the balance amount and for the balance period of tax incentive as on the appointed day on the Certificate of Entitlement issued under this Order. (2) (a) The tourism unit eligible for tax incentive under the earlier law desires avail remission of tax shall apply in Form-TU 1 to the Commissioner within thirty days from the date of this Order. (b) The tourism unit which has obtained the Eligibility Certificate subsequent to the date of this Order shall apply in Form-TU 1 to the Commissioner within thirty days from the date of obtaining such Certificate; Provided that the Commissioner may, if he thinks fit, for the reasons to be recorded in writing condone the delay in filing an application. (c) An application for grant of the Certificate of Entitlement shall be accompanied by a copy of the eligibility certificate obtained from the Director/Commissioner of Tourism. (3) On receipt of application, Commissioner may issue to such tourism unit a Certificate of Entitlement in from the appointed day or the date on which eligibility certificate has been obtained where the eligibility certificate has been obtained subsequent to the appointed day. The Certificate of Entitlement shall be subject to the provision of this Order and the terms and conditions of the respective Government Resolutions or notifications, on the basis of which such tourism unit was granted the Eligibility Certificate; Provided that where the Commissioner has not condoned the delay in filing the application, the Certificate of Entitlement shall be effective from the date of application. (4) The eligible tourism unit shall be entitled to the benefit of remission of tax excluding additional tax as provided under this Order. (5) Subject to the provisions of section 11, the eligible tourism unit shall - (i) claim tax credit of additional tax paid on purchase of taxable goods;
(ii) not claim tax credit of the tax other than referred to in sub-clause (i) above. (6) The eligible unit shall not be entitled to the option for payment of lump sum tax under section 14D in lieu of tax payable under section 7 of the Act and the permission granted to pay lump sum tax under section 14D to such unit, if any, shall deemed to have been cancelled from the date of permission. (7) The eligible tourism unit availing tax remission may collect the tax on sales affected by him and shall not pay tax payable under sub-section (1) of section 7 but pay additional tax payable under sub-section (1A) of said section after deducting tax credit of additional tax paid on purchase of taxable goods subject to the provisions of section 11 into Government Treasury. The concerned Commercial Tax Officer shall pass order for remission of such tax separately for each tax period. (8) The Deputy Commissioner of Commercial Tax who is having jurisdiction over the place of business of the eligible tourism unit shall collect from concerned tax authority the details of remission availed of by an eligible tourism unit towards tax, electricity duty, luxury tax and entertainment tax on month to month basis and furnish to the Commissioner, the details of aggregate quantum of incentive towards all taxes availed of. (9) The Deputy Commissioner of Commercial Tax who is having jurisdiction over the place of business of the eligible tourism unit shall be responsible for maintaining accounts, scrutiny and verification of incentive towards various taxes availed by eligible tourism unit. (10) General Conditions. (a) For the purpose of deciding quantum of incentive availed of in a month, the aggregate amount of remission of tax applicable to the goods sold by the eligible tourism unit shall be considered. (b) For the purpose of deciding quantum of incentive availed of in a month - (i) where the eligible tourism unit has collected tax on the sales of goods from the appointed day, (ii) where the eligible tourism unit has not collected tax on the sales of goods from the appointed day, or (iii) where the eligible tourism unit was granted permission to pay lump sum tax under section 14D and such permission has been cancelled from the date of permission. the aggregate amount of remission of tax payable under subsection (1) of section 7 of the Act on the goods sold by such unit shall be considered. (c) The eligible tourism unit shall be liable to pay tax in accordance with the provisions of the Act as soon as the quantum of incentive availed of towards tax equals the amount specified in the Certificate of Entitlement or on the expiry of the eligibility period mentioned in the Certificate of Entitlement, whichever is earlier. The period during which the eligible unit has remained closed as referred to in clause (e) below, shall also be adjusted against the eligibility period. (d) If the eligible tourism unit contravenes any of the provisions of the Act or rules or any of the conditions of this Order, the Certificate of Entitlement issued under this Order shall be liable;
(e) (i) to be suspended for a period not exceeding six months and remission shall not be granted for the tax on the turnover of sales made during the period of suspension. Such unit shall be liable to pay tax in accordance with the provisions of the Act during the period of such suspension and the period of suspension shall be counted for the purpose of total period of incentive, (ii) to be cancelled and remission shall not be granted for the tax on the turnover of sales made thereafter and such unit shall be liable to pay tax in accordance with the provisions of the Act on such sales of goods for which benefit of remission is availed of The eligible tourism unit will remain in commercial operation continuously during the eligible period. However, in case where operation is discontinued due to reason beyond the control of such unit, the Director of Tourism may examine the individual cases and condone the period of discontinuation based on the guidelines issued by the Government in this behalf from time to time. Explanation:- For the purpose of this Order, the expression "eligible tourism unit" shall mean, (i) a tourism unit eligible for the incentives under the new package scheme of incentives for tourism projects announced by the Government of Gujarat, Information and Broadcasting and Tourism Department Resolution No. NTP-1095-103-C, dated the 20th December, 1995 or No. DTT-1090-707- S, dated the 4th February, 1991, No. DTT-1095-689-S, dated the 31st December, 1997 and No. DTT-1095-689-S dated the 19th September, 1998 as amended from time to time and which has obtained an Eligibility Certificate from the Director/Commissioner of Tourism and the Exemption Certificate from the Commissioner under the earlier law and a Certificate of Entitlement under this Order, and (ii) a tourism unit to which a Certificate of Entitlement may be granted. FORM - TU 1 APPLICATION FOR CERTIFICATE OF ENTITLEMENT Sr. No. Description 1. Name of Unit 2 Address 3 Registration No. under Gujarat Sales Tax Act, 1969 4 Registration No. under the Value Added Tax Act, 2003 5 Number and date of Government Resolution under which Eligibility Certificate was issued by the Tourism Department 6 The amount of incentive granted under Eligibility Certificate Details
7 Period for incentive granted under Eligibility 8 Number and date of Government Resolution under which Exemption Certificate was issued by the Commissioner under the earlier law. 9. The amount of incentive granted under the 10. Period for which incentive granted under the 11. Details of goods for which incentive granted under the 12. Amount availed up to 31-3-2006 under the Gujarat Sales Tax Act, 1969. 13. Balance amount availed under the Act. I... do hereby certify that the details shown in the application is true and correct. Place : Date : (Authorised Signatory) FORM - TU 2 CERTIFICATE OF ENTITLEMENT Sr. No. Description 1. Name of Unit 2 Address 3 Registration No. under Gujarat Sales Tax Act, 1969 4 Registration No. under the Value Added Tax Act, 2003 5 Number and date of Government Resolution under which Eligibility Certificate was issued by the Tourism Department 6 The amount of incentive granted under Eligibility Certificate 7 Period for incentive granted under Eligibility 8 Number and date of Government Resolution Details
under which Exemption Certificate was issued by the Commissioner under the earlier law. 9. The amount of incentive granted under the 10. Period for which incentive granted under the 11. Details of goods for which incentive granted under the 12. Amount availed up to 31-3-2006 under the Gujarat Sales Tax Act, 1969. 13. Balance amount availed under the Act. Condition:- (1) This certificate is issued subject to the conditions prescribed under this order. (2) The eligible unit shall avail tax incentives only for the balance amount as on appointed day and for the period shown in the Eligibility Certificate issued by the Tourism Department. (3) The eligible unit to whom Eligibility Certificate issued after coming into force of this order, shall avail tax incentive for the amount and the period shown in such (4) This certificate shall cease to operate immediately on expiry of monetary limit of the unit or time limit whichever is earlier. Place : Deputy Commissioner of Commercial Tax Date : Circle... By order and in the name of the Governor of Gujarat, M. A. Bhatt Additional Secretary of Government