Chapter II REGISTRATION

Every dealer—

1. (i) carrying on business before the commencement of this Act; or
2. (ii) commencing business after the commencement of this Act, and whose total turnover in any year is not less than rupees ten lakhs shall be liable to be registered under this Act:

Compulsory registration Notwithstanding anything contained in section 4, the following classes of dealers shall be liable for registration under this Act, irrespective of their quantum of total turnover:—

1. (i) every casual trader;
2. (ii) every dealer importing goods in the course of business from outside the territory of India to the Union Territory for sale;
3. (iii) every dealer exporting goods from the Union Territory to outside the territory of India;
4. (iv) every dealer registered or liable to be registered under the Central Sales Tax Act, 1956;
5. (v) every dealer residing outside the Union Territory, but carrying on business in the Union Territory and the agent of such non-resident dealer;
6. (vi) 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 or distributing goods on behalf of any principal;
7. (vii) every dealer in Indian Made Foreign Liquor including beer; and
8. (viii) every dealer in Bullion and Specie.

1. (1) At the time of commencement of this Act, all dealers registered under the Pondicherry General Sales Tax Act, 1967, shall be deemed to be provisionally registered under this Act and required to submit the prescribed application within one month from the date of commencement of this Act for final registration.
2. (2) Where any dealer, other than the dealer mentioned under sub-section (1), liable to be registered under this Act, but failed to do so, shall be deemed to have been registered by the prescribed authority, as if an application to register had been made.

A dealer who is not liable to register may also opt for registration in accordance with the provisions of this Act.

1. (1) The Commissioner shall appoint as many number of officers, as may be required from time to time, not below the rank of Assistant Commercial Tax Officer to discharge the function of registering authority.
2. (2) An application for registration shall be made to the registering authority, in such manner and within such period as may be prescribed and shall be accompanied by a fee of:
   • (i) ten thousand rupees in respect of medium and large-scale industries;
   • (ii) five thousand rupees in respect of dealers in Indian Made Foreign Liquor; and
   • (iii) one hundred rupees in respect of other cases.
3. (3) If the registering authority is satisfied that the application is in order, it shall register the applicant and issue to him a certificate in the prescribed form specifying all his places of business.
4. (4) A certificate issued under sub-section
5. (3) shall be valid for a year and shall be renewed from year to year on payment of the fee specified in sub-section (2): Provided that when a dealer has ceased to do business in any year, and gives notice of the same to the prescribed authority he shall not be liable to pay any registration fee from the commencement of the following year unless he resumes business.
6. (5) A registered dealer may apply to the registering authority for a copy or copies of the registration certificate for each additional place of business, such as branch, godown, etc. along with a fee of one hundred rupees for each copy, and if the registering authority is satisfied that the application is in order, it shall issue to the registered dealer a copy or copies of the registration certificate.
7. (6) If the registering authority is satisfied that a registration certificate or a copy thereof is lost or accidentally destroyed, it shall, on an application made by the registered dealer accompanied by a fee of one hundred rupees, issue to him a duplicate of the registration certificate.
8. (7) No application for registration or for a copy or duplicate of the certificate and no renewal under this section shall be refused, unless the dealer concerned has been given an opportunity of being heard.
9. (8) A registered dealer shall exhibit at each place of his business the registration certificate, or a duplicate or a copy thereof.
10. (9) All registered dealers shall quote the registration number in the return, challan, or other document used for the purposes of this Act.

1. (1) The registering authority shall have power for good and sufficient reasons to demand from time to time from any registered dealer or from a dealer, who has applied for registration under this Act, security or as the case may be, additional security for proper payment of tax and such other amount as may be due, for an amount not exceeding one-half of the tax payable on the turnover of the dealer for the year or as estimated by the registering authority.
2. (2) The whole or a part of the security furnished by a dealer may be adjusted towards any amount due under this Act or rules framed thereunder:

Granting of exemption in certain cases

1. (1) The Government may, from time to time, by notification, exempt from or vary the operation of anyone or all of the provisions of this Act related to registration in respect of specified dealers or class of dealers in any specified goods or class of goods.
2. (2) Any exemption under sub-section (1),—
   • (i) may extend to the whole of the Union Territory or to any specified area or areas therein; and
   • (ii) may be made subject to such restrictions and conditions as may be specified in the notification.
3. (3) The Government may, by notification, cancel or vary any notification issued under sub-section (1).

(1)

1. (a) A registered dealer shall inform the registering authority, in the following circumstances within thirty days, if
   • (i) he sells or otherwise disposes of his business or any part thereof, or
   • (ii) there is any change in ownership of the business including any change in the status, or
   • (iii) the business is discontinued or the place of business is changed, or
   • (iv) any change in the name, style or nature of the business, for necessary amendments to be made in the registration certificate.
2. (b) In case of death of the registered dealer, his legal representative shall inform the registering authority within thirty days for any amendments or may surrender the registration certificate.

1. (2) The registering authority on receipt of application for amendment or otherwise on his own motion may amend the registration certificate or reject the application within thirty days of the date of receipt of such application, after making such enquiry as he deems fit and after giving reasonable opportunity of being heard.
2. (3) An amendment of a certificate shall take effect from the date of the event referred to in sub-section
3. (1) which necessitates the amendment, whether or not the information in that behalf is furnished within the time specified in that sub-section: Provided that, where in consequence of a change in the ownership of a business, the liability to pay tax of a dealer ceases, the amendment of the certificate of registration shall take effect from the date of the submission of application to the registering authority.
4. (4) Any amendment of a certificate of registration shall be without prejudice to any liability for tax or any such amount due or leviable or for any prosecution for an offence under this Act.
5. (5) If a dealer fails without sufficient cause to comply with the provisions of sub-section (1), the registering authority may, after giving the dealer a reasonable opportunity of being heard, direct him to pay a penalty of five hundred rupees in addition to the penalty chargeable on the tax due at the rate provided under sub-section
6. (4) of section 37 of this Act.
7. (6) For removal of doubt, it is hereby mentioned that where a registered dealer,
   • (i) effects a change in the name of his business; or
   • (ii) is a firm and there is a change in the constitution of the firm without dissolution thereof; or
   • (iii) is a trustee of a trust and there is a change in the trustees thereof; or
   • (iv) is a Hindu undivided family and the business of such family is converted into a partnership business with all or any of the co-parceners as partners thereof ; or
   • (v) is a firm or a company or a trust or any other organisation and a change occurs in the management of the organisation such as any change of directors or managing directors of the company as the case may be, then merely by reason of the circumstances aforesaid, it shall not be necessary for the registered dealer to apply for a fresh certificate of registration but it shall be sufficient, on information being furnished, to get the registration amended.

1. (1) In the case of any registered dealer, where
   • (i) the business has been discontinued, transferred as a whole or otherwise disposed of, or
   • (ii) the total turnover for two preceding consecutive years is less than rupees ten lakhs, or
   • (iii) the dealer dies, and for such other good and sufficient reason, the registering authority may, either of his own motion or on the application of the dealer, in the case of death on the application by his legal representative, in the prescribed manner, cancel the registration from such date, as he considers fit having regard to the circumstances of the case.
2. (2) The cancellation of the registration shall not affect the liability of the dealer to pay tax, any penalty and interest or other amount due for any period prior to the date of cancellation whether such tax, penalty and interest or other amount is assessed before the date of cancellation but remains unpaid, or is assessed thereafter.
3. (3) On cancellation of registration, in any case, where the dealer has availed input tax credit, any taxable stock and capital goods held shall be deemed to have been sold and tax shall be payable on such goods at their fair market value, except where the business is transferred as going concern to another registered dealer and in accordance with the rules prescribed in this respect under this Act.
4. (4) A dealer shall, until his registration is cancelled, be liable to pay the registration fees specified in sub-section
5. (2) of section 8 for every year subsequent to that in which he is registered.

1. (1) Every registered dealer who transacts business at places other than his registered place or places of business or employs a travelling salesman or representative to transact business as aforesaid shall obtain a permit issued under this Act authorizing himself or, as the case may be, the travelling salesman or representative so to do.
2. (2) The entire turnover of business carried on under the permit shall be included and accounted for by the registered dealer in his account and returns and shall be dealt with as if it were the turnover of business done by the registered dealer himself at the registered place of business.
3. (3) Every permit holder shall carry the permit on his person and shall produce it on demand by any officer empowered by the Government in this behalf. He shall maintain and produce on demand to any such officer a true and correct account of all the transactions carried on under the permit and also a stock book showing the quantities of goods entrusted to him by the registered dealer, the quantities disposed of from day-to-day by sale or otherwise and the balance on hand at the end of each day.
4. (4) An application for permit referred to in sub-section
5. (1) shall be made to such authority, in such manner and within such period as may be prescribed and shall be accompanied by such fee not exceeding one hundred rupees as may be prescribed. Explanation. - A separate application with a separate fee shall be necessary for the registered dealer and for each travelling salesman or representative employed by him.
6. (5) If the prescribed authority is satisfied that the application is in order, it shall issue the permit in the form as may be prescribed.
7. (6) A permit issued under sub-section
8. (5) shall be valid for a year and shall be renewed from year to year on receipt of an application from the registered dealer accompanied by such fee not exceeding one hundred rupees as may be prescribed.
9. (7) If the prescribed authority is satisfied that the permit issued under sub-section
10. (5) is lost or accidentally destroyed, it shall on application by the registered dealer accompanied by a fee of one hundred rupees, issue to him a duplicate of the permit.
11. (8) The prescribed authority shall cancel a permit,
    • (a) on requisition made in writing by the registered dealer; and
    • (b) on the cancellation of the certificate of registration.
12. (9) The prescribed authority may cancel a permit if the permit holder has contravened any of the terms or conditions of the permit or any of the provisions of this Act or the rules made thereunder.
13. (10) No application for a permit or for a duplicate thereof shall be refused and no permit shall be cancelled under clause
    • (b) of sub-section
14. (8) unless the registered dealer has been given a reasonable opportunity of being heard and no permit shall be cancelled under sub-section
15. (9) unless the permit holder has been given a reasonable opportunity of being heard.