Uttar Pradesh VAT Rules

Registration of dealers

1. Every dealer liable to pay tax shall obtain registration certificate.
2. Except as provided under sub-sections (4) and (5), every dealer liable to pay tax shall, for issue of registration certificate, apply to the registering authority within a period of thirty days from the date on which such dealer has become so liable, in the prescribed form and manner along with proof of deposit of registration fee of one thousand rupees:

   Provided that a dealer who fails to apply for issue of registration certificate within the time prescribed, without prejudice to any other liability under this Act, may apply after depositing late fee at the rate of rupees one hundred for every month or part thereof for the period of delay.

3. On the commencement of this Act, a dealer who is otherwise not liable to pay tax, including a dealer who intends to carry on business, may apply for issue of registration certificate in the manner prescribed in sub-section (2).
4. • Every dealer who holds a registration certificate or a provisional registration certificate issued under the Uttar Pradesh Trade Tax Act, 1948 and is liable to pay tax from the date of the commencement of this Act, shall be deemed a registered dealer on the date of the commencement of this Act; and
   • Every other dealer who holds a registration certificate under the Uttar Pradesh Trade Tax Act, 1948 but otherwise is not liable to pay tax under this Act, shall be deemed a registered dealer under this Act provided he informs the registering authority within a period of thirty days from the date of the commencement of this Act in the prescribed form, of his intention to retain the registration certificate issued to him.

     Provided that if such dealer was required to pay any fee for renewal of the registration certificate under the provisions of the Uttar Pradesh Trade Tax Act, 1948, if the same has not been paid, the registration certificate shall not be deemed valid unless such dealer deposits renewal fee along with late fee of one hundred rupees within a period of thirty days form the date of the commencement of this Act.

5. In a case of a dealer whose application for issue of registration certificate under the Uttar Pradesh Trade Tax Act, 1948, is pending on the date of the commencement of this Act, and such dealer is liable to pay tax under this Act, if registration certificate is issued to him under the Uttar Pradesh Trade Tax Act, 1948, such dealer shall be deemed a registered dealer under this Act subject to deposit of renewal fee and late fee, if any, within thirty days from the date of the commencement of this Act.

   Provided that a dealer who is otherwise not liable to pay tax under this Act from the date of the commencement of this Act, shall not be deemed a registered dealer unless, after depositing renewal fee and late fee, if any, he informs the registering authority or the assessing authority, as the case may be, in the prescribed form, within thirty days from the date of the commencement of this Act, of his intention to retain registration certificate, if granted.

6. Every dealer who holds a registration certificate issued under the Uttar Pradesh Trade Tax Act, 1948 shall present it before the registering authority or the assessing authority, as the case may be, for grant of revised registration certificate within sixty days of the commencement of this Act.
7. Where the registering authority is satisfied that -
   • the application for issue of registration certificate is in order;
   • the information furnished is correct and complete;
   • the dealer-
     1. has deposited registration fee and late fee, if any;
     2. has furnished security to the satisfaction of the assessing authority or the registering authority, as the case may be, if demanded; and
     3. is a bona fide person with bona fide intention of carrying on business;

     it may, after making such inquiry as it may deem necessary, cause the dealer to be registered and grant registration certificate in the prescribed form.

8. If the dealer who has applied for grant of registration certificate does not fulfill any of the conditions mentioned in sub-section (7), or if any person having interest in the business is a defaulter in payment of any dues under this Act or under the Central Sales Tax Act,1956 or under the Uttar Pradesh Trade Tax Act,1948, relating to any other business, the registering authority, shall, after giving a reasonable opportunity of being heard to the applicant, reject the application by an order in writing.
9. Subject to provisions of sub-section (10) the registration certificate shall be valid with effect from the date it is granted and shall remain in force till the date of discontinuance of business.
10. The registering authority, after giving reasonable opportunity of being heard to the dealer, may cancel the registration certificate with effect from the date -
    • on which dealers' liability for payment of tax has ceased in view of the proviso to sub-section (6 ) of section 3; or
    • on which the dealer has discontinued the business; or
    • of order of cancellation where-
      1. the dealer has obtained registration certificate by fraud or by mis-representation of facts; or
      2. the dealer has failed to furnish security or additional security, as the case may be; or
      3. the dealer has transferred any prescribed form of declaration or certificate obtained by him to any person against provisions of this Act; or
      4. the dealer has permitted some other person to carry on business in his name;
      5. the dealer has issued any tax invoice to a dealer without making actual sale of goods,
11. During cancellation proceedings under sub-section (10), where the registering authority is satisfied that the dealer will succeed in causing revenue loss, pending action for cancellation under sub-section (10), it may, after assigning reasons therefor, suspend the registration certificate by passing an order in writing, for the period during which the proceedings are pending.

    Provided that if the dealer, by furnishing adequate security to the satisfaction of the registering authority, satisfies that revenue loss, if any, shall be made up by him, the registering authority may revoke the suspension of registration certificate.

12. During the period of suspension of registration certificate under sub-section (11), the dealer shall be treated as unregistered dealer.
13. The registering authority, after considering any information furnished or otherwise received and after making such inquiry as it may deem fit, amend from time to time any certificate of registration which shall take effect:
    • in the case of change in the name, ownership or place of business, or opening of a new place of business, from the date of the event necessitating the amendment whether or not information in that behalf is furnished within the time prescribed under section18.
    • in case of any addition or modification in the description of any goods or class of goods in the certificate of registration, from the date of event necessitating the amendment if information in that behalf is furnished within the time prescribed under section 18 and in any other case, from the date of receipt of request for such addition or modification by the registering authority or the assessing authority, as the case may be;
    • in case of deletion of any goods or class of goods, from the date of order of deletion.

      Provided that where in consequence of a change in the ownership of a business, liability for payment of tax of any dealer ceases, the amendment of the certificate of registration shall take effect from the date on which information in respect of such change is furnished under section 18.

    Explanation (I) - Any amendment of a certificate of registration under this sub-section shall be without prejudice to any liability for tax or penalty imposable, or for any prosecution for an offence under this Act.

    Explanation (II)-For the removal of doubts, it is hereby declared that where a registered dealer-

    • affects a change in the name of his business; or
    • is a firm and there is change in the constitution of the firm without dissolution thereof; or
    • is a trustee of a trust and there is a change in the trustees thereof; or
    • Is a guardian of the ward and there is a change in the guardian; or
    • is a "Hindu Undivided Family" and the business of such family is converted into a partnership business with all or any of the coparceners as partners thereof then merely by reason of any of the circumstances aforesaid, it shall not be necessary for the dealer or the firm the constitution whereof is changed, or the new trustees, or the new guardian or, as the case may be, the partners of such partnership business, to apply for a fresh certificate of registration, and on information being furnished in the manner required by section 18 the certificate of registration shall be amended.
14. The registration certificate shall not be cancelled or amended by the registering authority on its own motion unless the dealer has been given reasonable opportunity of being heard.

Information to be furnished regarding change of business

If any dealer to whom the provisions of section 17 apply:-

1. transfers his business or any part thereof by sale, lease, leave, license, hire or in any other manner whatsoever, or otherwise disposes of his business or any part thereof; or
2. acquires any business, whether by purchase or otherwise; or
3. effects or comes to know of any other change in the ownership or constitution of his business; or
4. discontinues his business or changes his place of business or warehouse or opens a new place of business or warehouse; or
5. changes the name, style or nature of his business or effects any change in the class or description of goods in which he carries on his business, as specified in his certificate of registration; or
6. enters into partnership or other association in regard to his business; or
7. starts a new business or joins another business either singly or jointly with other persons; or
8. in the case of a company incorporated under a statute effects any change in the constitution of Board of Directors; or
9. effects any change in the particulars furnished in application for grant of registration certificate under section 17,

he shall within thirty days of the occurring of any of the events aforesaid, inform the registering authority in the form and manner, as may be prescribed.