Registration Ė Procedure and other provisions.
||How to apply for registration?
||A dealer has to make an application in Form-101 within 30 days of his turnover exceeding the threshold limit specified.
||To whom such application is to be made?
|| Application for registration is to be made to registering authority in whose jurisdiction the dealerís chief place of business is situated.
||What documents and details are required to be furnished with application for registration?
||The following documents are required to be furnished with application for registration.
- Two copies of recent passport size photographs attested by sales tax practitioner, advocate or Gazetted Officer if the applicant dealer is proprietorship, HUF, partnership firm, or a private or public limited company.
- Details of property held by the dealer including property held by partner, director, trusty, etc.
- Proof of business premise, residence, proof of domicile.
- Name, specimen signature with designation of the persons authorized to sign tax invoice, bill, delivery challan and statutory forms on behalf the dealer.
- Turnover of sales or purchase up to the date of application.
- Declaration regarding bank account and manager.
||How much security amount is required to be paid?
||A sum of Rs. 50,000/- is required to be furnished as security. However, the amount can be reduced up to Rs. 10,000 on production of any three of the following documents:
- Last paid electricity bill in his/parentís/spouseís name-
- Last paid telephone in his/ parentís/spouseís name
- Document showing ownership of business place in his/ parentís/spouseís name
- Document showing ownership of residence in his/ parentís/spouseís name
- Registration under Shop & Establishment Act
- Registration under Custom and Central Excise Act
||In which form the security is to be furnished?
||The security can be in any of the following form:
- A bond executed in Form-105 with one surety
- Deposit in cash
- N.S.C. etc.
- Bank guarantee
||When registration certificate can be cancelled?
|| In case of closure of business or in case of decrease in the turnover below the threshold or in case change of place of business out of the area of the registering authority.
||Whether old registration will continue in case of change in place of business?
||In cases of change in place of business from the area of one registering authority to another authority, old registration has to be cancelled and a new registration certificate is required to be obtained.
||May I make my application by post?
||Yes. But before the registration can be finalised you may be asked to attend the Tax Office in person in order that the Department may verify your identity.
||I have more than one place of business. Do I make separate applications?
||You should normally make a single application for registration whether you carry business from one or more than one location.
||If my nature of business changes, does this affect my registration?
||If you change your business in any way, you must notify the Department within thirty days.
||Do I need to tell the Department about other changes?
||You must tell your Sales Tax Office if you ∑ discontinue your business ∑ transfer or dispose of your business ∑ change your business address ∑ open a new place of business ∑ change the name of business ∑ enter into a partnership ∑ become involved in insolvency proceedings ∑ open or close a current bank account ∑ in the case of a company, become involved in a merger, de-merger or amalgamation.
||Is there a registration fee?
||No, there is no fee for registration.
||What happens on application for registration?
||The Commercial Tax Office will examine your application. If it is complete, it will be accepted for processing and you will be granted a Registration Certificate. If it is not complete, the application will not be accepted and you will be asked to return with a complete set of documents.
||Whether registration can be suspended for any default?
||Yes, The registration can be suspended on following events:
- For default in filing return includes payment
- For default in furnishing information regarding change in business like:
- transfer of business, discontinuance of business
- opening of business
- temporarily closing of business for a period of thirty days
- change in name, style, constitution or nature of business
- entering in to partnership or change in ownership
- For not furnishing the information about change in bank account
- For not furnishing information about change of manager
- For default of non-production of books of accounts
||Whether registration would be suspended immediately on occurring of any event mentioned in Q-14?
||No. The dealer would be given sufficient opportunity of being heard. If the offence is made good, registration will not be suspended.
||What would be the effect of suspension of registration?
||The dealer would loose the right available to registered dealer. No tax credit would be available to the dealer who purchases from a dealer whose registration is suspended.
||Whether suspension can be revoked?
||Yes. If the default is made good, the suspension can be revoked.
||What are the provisions for cancellation of registration?
||The registration can be cancelled on following events:
- For three consecutive default of not filing returns in time
- For knowingly supplying false information in return with a view to evade tax
- For three consecutive default in payment of tax
- For holding/accepting/issuing false declaration
- For not including tax invoice in books of accounts
- For conviction of any offence
- For not giving information of closure of business
- For issuing bogus bills
||What will happen after suspension/cancellation of registration certificate?
||Name and TIN numbers of such dealers will be published in public circular and on website of the department within ten days of suspension/cancellation of registration certificate. Any dealer purchasing goods from such dealer subsequent to publication will not be entitled for input tax credit for such purchases.
||Where to keep registration certificate?
||Registration certificate shall be displayed at the entrance of his place of business and such additional places as may be declared.
||What would happen if the registration certificate is lost, destroyed etc.?
||In such event, the dealer can apply for duplicate copy of registration certificate on payment of fees of rupees one hundred in form of court fee stamp.