In exercise of the powers under sub-section (1) of Section 18-A of the Karnataka Value Added Tax Act, 2003, it is specified with effect from the 1st day of March, 2010, that a dealer registered under the said Act, who is a developer of any special economic zone or a unit located in any special economic zone in the State, shall deduct tax at source as specified under the said Section in respect of goods purchased by him from another dealer registered under the said Act and on which he is liable for refund or deduction of tax paid under sub-section (2) of Section 20 of the said Act.