1. REGISTRATION OF DEALER- SECTION 7

2. Introduction  “Dealer” may be any person, natural or artificial who carries on the business of buying, selling, supplying or distributing the goods for consideration.  Dealer act as intermediary to collect tax from consumers.  Every dealer liable to pay tax has to register himself with the sales tax authorities.  Registered Dealer is a dealer who is registered under the Central Sales Tax Act, 1956.

3. Types of Registration Compulsory Registration Section 7(1)  There is no initial exemption and registration is required even if sales are of very small amount.  Every dealer who is liable to pay tax under CST Act 1956 shall have to apply for registration.  It is compulsory for him go get himself registered.  Registration has to be done with state Sales Tax Authorities.

4. Types of Registration  Voluntary Registration Section 7 (2)  It is optional for a dealer to get himself register under the Central Sales Tax Act, 1956 under the following circumstances:- 1) A dealer who is liable to pay tax under the State Sales Tax Law. 2) A dealer having a place of business in State where there is no State Sales tax.  This provision is mainly useful when the dealer makes purchases in Inter-State but all his sales are within the State. But this way, he can make purchases in Inter-State at concessional rate of tax against ‘Form C’.

5. Registration of Dealers (Section 7) 1. Application for registration:- Application for registration under Section7(1) shall be made within 30 days from the date on which the dealer becomes liable to pay tax under CST Act, 1956.  Application under Section 7(2) can be made at any time.  Application Fees of Rs 25 in the form of court fees stamps.  Form A shall be signed by the applicant for registration and verified by proprietor of the business, in case of partnership one of its partners, in case of HUF by its karta and in case of company, by any one Director of the company. 2. Deemed to be liable:- A dealer shall be deemed to be liable to pay tax under the sales tax law of the appropriate State has to submit application for registration.

6. Registration of Dealers (Section 7) 3. Condition for issue of certificate :- Where it appears necessary to the authority for the proper realisation of the tax, may impose as a condition that the dealer shall furnish in the prescribed manner and security as may be so specified. 4. Grant of Certificate of Registration:- If the application is in conformity with the provisions of this Act, authority shall register the applicant and grant him a certificate of registration in the prescribed form shall specify the class or classes of goods.

7. Registration of Dealers (Section 7) 5. Demand of Security or Additional Security:- The Security is demanded for the following purposes:  Proper realisation of the tax payable under the Act  Proper custody and use of the forms under CST Act, 1956.  Additional Security can also be demanded but not more than estimated tax liability for the current year. 6. Maximum amount of security:- The amount of security or the aggregate of the amount of such security and the amount of additional security shall not exceed: (i) In case of non-registered dealers a sum equal to tax payable under the Act on turnover of dealer. (ii) In case of registered dealer a sum equal to tax payable under the Act on turnover of dealer as estimated by the authority under the Act.

8. 7. Surety Bond :- Where the security furnished in the form of a surety bond & the surety becomes insolvent or dies, the dealer is required to inform the registering authority within thirty days. He is also required to furnish fresh surety within 90 days of such event.  8. Forfeiture of Security:- Registering Authority may forfeit the whole or any part of the security for the realisation of any amount of tax or penalty if: Dealer has defaulted in payment of any amount of tax or penalty assessed.  Dealer has misused any of the forms or has failed to keep them in proper custody  9. Failure to furnish security:- It may make a dealer ineligible for the issue of Registration Certificate Authority may refuse to issue the form C, D, E1 etc to a dealer who has failed to comply with the order.  10. Refund of security:- If the amount of security is not required for the purposes of this Act, the registration authority may, on an application by the dealer, order the refund of that security.

9.  11. Appeal against order demanding security:- Any person aggrieved by an order demanding security may prefer an appeal within 30 days of service of the order on him. But the appeal can be made only after furnishing the security.  Certificate of registration:- Certificate is granted in Form B and shall be kept at principal place of business & copy should be kept at every place of business. Certificate becomes effective from the Date of Application. 12. Amendment in Certificate :- Under following circumstances:  On the application made by the dealer himself.  If the registering Authority is satisfied the dealer has changed the name, place or nature of business & has changed the class of goods in which he carries business.

10. 13. Cancellation of the Certificate :- Under following circumstances by Authority:  Dealer has cease to exist  Ceased to carry on business  Has failed to furnish security  Has failed to pay tax or penalty under CST Act, 1956  Has failed to pay sales tax or penalty under state sales tax. By Dealer:  Has stopped business  Is not liable to pay tax 10. Application for cancellation :- A registered dealer may apply not later than six months before the end of a year to the authority, and the authority shall, unless the dealer is liable to pay tax under this Act, cancel the registration accordingly, and where he does so, the cancellation shall take effect from the end of the year.

11. Certificate of Registration Important Provisions  Remedy for errors in registration certificate.  Certificate to be kept at the principal place of business.  Registration certificate not transferable  Separate registration in each state.  Time limit to apply for registration