In exercise of the powers conferred by sub-section (3) of Section 4 of the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004), read with Section 21 of the Karnataka General Clauses Act, 1899 (Karnataka Act III of 1899) and in supersession of the Notification-V No. FD 182 CSL 2008, dated 31st July, 2008, published in Karnataka Gazette, Extraordinary, dated 31st July, 2008, the Government of Karnataka hereby reduces with effect from the First day of April, 2010, the tax payable by a dealer engaged in the purchase and sale of used motor vehicles, on the sale of all kinds of used motor vehicles including used motor cycles under sub-section (1) of Section 4 of the said Act to five per cent of the difference between the taxable turnover in respect of such sale and the amount paid towards purchase of such motor vehicles subject to the condition that,

1. no deduction of input tax is claimed by the dealer in respect of purchase of any goods used in the motor vehicles sold; and
2. such motor vehicles have been registered in the State prior to their sale under the provisions of the Motor Vehicles Act, 1988 (Central Act 59 of 1988)