Registration of Dealers

(1) Every dealer (other than casual trader ) whose total turnover in any year is not less than Rs. 50,000/- shall and  any other dealer may get himself registered under this Act.

See Rules 8,9,28 and 54 Forms A :A-1 :D :D-1 :XII and XXV

2(1A) Notwithstanding anything contained in this section any dealer who purchases goods inside the State and sells the same to consumers on retail basis and who does not issue declarations in Fom-X in respect of sales or purchases effected by him and who is not registered under Central Sales Tax Act, 1956 shall be registered as a special category dealer and certificate of the registration shall be issued to him in such manner and in such form as may be prescribed. 2. Sub-section (1A) was inserted by Act No. 19 of 2000 w.e.f.1.4.2000.  (2) Notwithstanding anything contained in sub-section (1) every dealer - (a) carrying on business in all or any of the goods mentioned in the First, Second, Third, Fifth and sixth      Schedules. (b) carrying on or executing any works contracts; (c) who transfers the right to the use of any goods for any purpose whatsoever (whether or not for a specified period ) in the course of business to any other person; (d) registered under sun-section (3) of Section 7 of the Central Sales Tax Act, 1956; (e) residing outside the State, but carrying on business in this State; (f) every agent of non-resident dealer; (g) every commission agent, broker, del credere agent, auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying distributing or delivering the goods on behalf of any principal:  shall get himself registered under this Act irrespective of the quantum of his turnover. [Provided that the State Government may by notification , and for reasons to be specified therein exempt any dealer or class of dealers from registration under this section.] The bracketed proviso was added by Act No.25 of 1988 w.e.f.16.9.1988 (3) Every miller whether he is a dealer or not shall get himself registered under this Act. (4) Where a registered dealer -       (i)   dies, or       (ii)  transfers or otherwise disposes of his business in whole or in part, or       (iii) effects any change in the ownership of his business ; in consequence of which he is succeeded in the business or part thereof by any other person, such successor in business shall unless he already holds a certificate of registration get himself registered under this Act. Note: Clause (b) of sub-rule(22) of Rule 28 has been subs. by G.O.Ms.No.788 Rev dt.21.9.1996 whereby in case of admission of a new partner or retirement or death there is no need for a fresh registration and it would be sufficient if a copy of the revised instrument of partnership is furnished to the registering authority. (5) No dealer who is liable to get himself registered under sun-section (1) or sub-section (2) or  sub-section (4) shall carry on business as a dealer unless he has been registered and is in possession of a certificate of registration. (6) An application for registration shall be made to the prescribed authority, in such manner and within such time as may be prescribed and shall be accompanied by a fee of one hundred rupees. (7) where it appears necessary to the authority to whom an application is made under sub-Section (6) so to do for the proper realisation of the tax and other dues payable under this Act, or for the proper custody and use of the forms referred to in this Act, the rules made and the notifications issued thereunder, he may by an order in writing and for reasons to be recorded therein, impose as a condition for the issue of a certificate of registration a requirement that  the dealer shall furnish in the prescribed manner and within such time as may be specified in the order such security as may be specified for all or any of the aforesaid purposes. (8) If the authority to whom an application is made under sub-section (6) is satisfied that the application is bonafide and is in order and in conformity with the provisions of this Act and the rules made thereunder and conditions, if any, imposed under sub-section (7) has been complied with, he shall register the applicant and grant him a certificate of registration in the prescribed form. (9) Where any such dealer has more than one shop or place of business (other than a place used merely for the storage of goods) he shall apply for registration and obtain a separate registration certificate in respect of each such shop or place of business on payment of a sum of twenty rupees for each such shop or place of business . (10) Where it appears necessary to the authority granting a certificate of registration under this section so to do for the proper realization of tax and other dues payable under this Act or for the proper custody and use of the forms referred in sub-section (7) he may, at any time while such certificate is in force, by an order in writing and for reasons to be recorded therein, require the dealer , to whom the certificate of registration has been granted, to furnish within such time as may be specified in the order and in the prescribed manner such security, or, if the dealer has already furnished any security in pursuance of an order under this sub-section or sub-section (7) such additional security, as may be specified in the order for all or any of the aforesaid purposes. (11) No dealer shall be required to furnish any security under sub-section (7) or any security or additional security under sub-section (10) unless he has been given an opportunity of being heard and the amount of such security or additional security that may be required to be furnished shall not exceed the amount equal to tax payable under this Act, in accordance with the estimate of such authority, on the turnover of such dealer for the year in which such security or as the case may be, additional security is required to be furnished. (12) Where the security furnished by a dealer under sub-section (7) or sub-section (10) is in the form of a surety bond and the surety dies or becomes insolvent, the dealer shall, within thirty days of the occurrence of such event, inform the prescribed authority and shall, within ninety days of such occurrence execute a fresh surety bond for the amount of the bond. (13) The authority granting the certificate of registration under this section may by order and for good and sufficient cause, and after giving the dealer an opportunity of being heard, forfeit the whole or any part of the security furnished by a dealer ,-         (a) for realising any amount of tax or penalty or interest or other dues payable by the dealer ;         (b) if the dealer is found to have misused any of the forms referred to in sub-sections (7) and (10) or         to have failed to keep them in proper custody. (14) Where, by reason of an order under sub-section (3) the security furnished by any dealer is rendered insufficient, he shall make up the deficiency in such manner and within such times as may be prescribed. (15) The authority issuing the forms referred to in sub-section (7) may refuse to issue such forms to a dealer who has failed to comply with an order under that sub-section or sub-section (10) or with the provisions of sub-section (12) or sub-section (14) until the dealer has complied with such order or such provisions as the case may be. (16) The authority granting an certificate of registration under this section may on an application by the dealer to whom a certificate of registration has been granted order the refund of any amount or part thereof deposited by the dealer by way of security under this section, if it is not required for the purposes of this Act. (17) The prescribed authority shall have power for good and sufficient reasons to cancel, modify or amend any certificate of registration issued by him. Provided that no order shall be passed under this sub-section without giving the dealer concerned an opportunity of being heard. (18) A dealer shall, until registration is cancelled be liable to pay the fees prescribed therefor for every year subsequent to that in which he applied for registration: Provided that when a dealer has ceased to do business in any year, he shall not be liable to pay any registration fee from the commencement of the following year unless he resumes business . (19) Nothing contained in this section shall apply to the State Government or Central Government or any department of any such Government carrying on business as a dealer.       1.Section 12 was subs. by Act 19 of 1986 w.e.f.1.8.1986.