20 Effect of registration

(1) If at the time at which an unregistered dealers registration takes effect after the commencement of this Act and 

(a) the dealer holds trading stock for the purpose of sale, or for use as raw materials for the production of [finished goods];

(b) the dealer has borne input tax on the purchase of the trading stock or raw materials;

(c) the dealer furnishes a statement of its trading stock and raw materials in the prescribed form to the Commissioner; and

(d) the dealer holds adequate proof of the amount of input tax in respect of the purchases;

the dealer shall be entitled to a tax credit for the trading stock or raw materials held by the dealer on the date that the dealers registration takes effect;

PROVIDED that the dealer must claim the entire amount of tax credit to which he is entitled in a single claim, which accompanies the first return furnished by the dealer under this Act.

Explanation I.- This section applies where goods have borne tax imposed after the commencement of this Act;

Explanation II.- Section 14 deals with goods which have borne sales tax prior to the commencement of this Act.

(2) For the purposes of sub-section (3) of section 9 of this Act, the amount of the tax credit shall be the least of -

(a) the amount of input tax disclosed in the proof referred to in clause (d) of sub-section (1) of this section;

(b) the tax fraction of the cost of the goods;

(c) the tax fraction of the fair market value of the goods at the time of registration; or

(d) such amount as may be prescribed.

(3) Where the registered dealer accounts for turnover on the basis of amounts received and amounts paid, he shall exclude from his turnover -

(a) any amount received after he is registered in respect of sales made while he was unregistered; and

(b) any amount paid after he is registered in respect of purchases made while he was unregistered.