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Dealers In Sales Tax India
A dealer under Section 2(b) means any person, who carries on (whether regularly or otherwise) the business of buying, selling, supplying or distributing goods directly or indirectly for cash or, for deferred payment or for commission remuneration or, other valuable consideration.
Dealer also includes:-
- A local authority, a body corporate, a company, any co-operative society or other society, club, firm, Hindu undivided family or other association of persons which carries on such business.
- A factor, broker, commission agent, del credere agent or any other mercantile agent, by whatever name called and, whether of the same description as mentioned earlier or not, who carries on the business of buying, selling, supplying or distributing goods belonging to any principal, whether disclosed or not.
- An auctioneer, who carries on the business of selling or auctioning goods belonging to any principal, whether disclosed or not and, whether the offer of the intending purchaser is accepted by him or, by the principal or, a nominee of the principal.
- Every person, who acts in any State, as an agent of a dealer residing outside that State and buys, sells, supplies or distributes goods in the State or, acts on behalf of such dealer as-
- A mercantile agent, as defined in the Sale of Goods Act, 1930.
- An agent for handling of goods or documents of title relating to goods.
- An agent for the collection or the payment of the sale price of goods or, as a guarantor for such collection or payment.
Every local branch or office in a State of a firm, registered outside that State or, a company or, other body corporate, the principal office or headquarters that is outside that State, shall be deemed to be a dealer under the Act.
Dealers Must Furnish Security.
The Sales Tax Authority has the power to impose a condition for the issue of certificate of registration and requires the dealer to furnish security, as specified in the prescribed manner and, within the prescribed time.
This security is required for the following reasons:
- To insure that the tax payable is properly realized.
- For custody and use of forms.
Maximum amount of security that a dealer can be asked to furnish.
There is an upper limit to the amount of security that can be asked for by the authorities to the dealer.
- In the case of a dealer who applies for compulsory registration, the amount of tax, payable by him for the current year(I.e. for which the security or additional security is demanded), under the CST Act (tax payable is estimated on the basis of turnover of the dealer for the current year).
- In the case of a dealer, who has made an application under voluntary registration or, is otherwise registered under voluntary registration, a sum equal to tax, leviable under the CST Act (the amount, estimated in accordance with the sales to such dealer in course of inter-state trade or commerce for the current year, had such dealer not registered under the Act.
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