State Act

THE KARNATAKA SALES TAX ACT, 1957

10-A. Procedure for registration.- (1) An application for registration under section 10 shall be made to such authority, in such manner and within such period as may be prescribed and shall be accompanied by a fee of 1[five hundred rupees.]1 (2) If the prescribed authority after making such enquiries as it may consider necessary is satisfied that the application is in order and that the particulars furnished therein are correct, it shall register the applicant and issue to him a certificate in the prescribed form. 1[Provided that the applicant shall be deemed to be registered if the prescribed authority does not reject the application submitted within a period of thirty days from the date of submission of such application.]1 (3) Where a dealer has more than one place of business, the registration certificate shall cover all such places of business. The prescribed authority shall issue copies of the registration certificate to the dealer for exhibition at each of his places of business and the dealer shall pay a fee of 1[five hundred rupees]1 for each copy. 1[(4) 2[(a) The prescribed authority shall for good and sufficient reasons demand from any dealer who is registered or has applied for registration under sub-section (1) or has applied for renewal of registration under this Act, security for proper payment of tax by him or for the proper custody and use of the forms referred to in 3[section 5-A , proviso to sub-section (2) of section 6-A and sub-section (2) of section 28-A or any of these provisions]3 and on such demand such dealer shall furnish the same.]2 1[Provided that in the case of different categories of dealers in liquor and/or beer, the prescribed authority shall demand security, for proper payment of tax as the State Government may fix from time to time by notification.]1 (b) The amount of security payable under clause (a) shall not exceed,— (i) in the case of dealers who have opted to pay tax under section 17, an amount equivalent to three months compounded rate fixed for that year, and (ii) in other cases, an amount equivalent to one-half of the tax anticipated to be payable by the dealer for that year: Provided that the assessing authority shall have power to demand at any time additional security if such authority has reason to believe that the security fixed was too low. (c) The security paid under this sub-section in any year shall be maintained in full until it is dispensed with by the assessing authority on being satisfied that the reasons for its demand no longer exist or until the registration certificate is cancelled, whichever is earlier.]1 1[(d) The assessing authority may by order and for good and sufficient cause forfeit the whole or any part of the security furnished by a dealer,— (i) for realising any amount of tax or penalty payable by the dealer; (ii) if the dealer is found to have mis-used any of 2[the forms referred to in clause (a) or to]2 have failed to keep them in proper custody: Provided that no order shall be passed under this clause without giving the dealer an opportunity of being heard; (e) The assessing authority issuing the forms referred to in clause (a) may refuse to issue such forms to a dealer who has failed to comply with a demand under that clause or under clause (b), until the dealer has complied with such demand.]1 1[(5) A certificate issued under sub-section (2) shall be renewed from year to year on payment of the fee specified in sub-section (1) until it is cancelled.]1 (6) A dealer registered under sub-section (1) of section 10 shall be entitled to have his registration cancelled if he is able to prove to the satisfaction of the prescribed authority that his turnover in each of the two consecutive years immediately preceding the application was less than the limit mentioned in the said sub-section. (7) The prescribed authority shall have power, for good and sufficient reasons, to cancel, modify or amend any registration certificate issued by it. (8) No application for registration and no renewal under this section shall be refused and no order under sub-section (4) or sub-section (7) shall be made, unless the dealer concerned has been given a reasonable opportunity of being heard. (9) When a dealer has ceased to do business in any year and gives notice of that fact 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. (10) The dealer shall exhibit the certificate of registration granted under subsection (1) at the place of business mentioned in the certificate. Where the dealer has more than one place of business, he shall exhibit the certificate of registration at the principal place of business mentioned in the certificate and a copy of such certificate granted under sub-section (3) at every other place of business within the State mentioned in the certificate.]1 1[(11) No dealer who is registered under the Karnataka Value Added Tax Act, 2003, shall be required to pay registration or renewal fee under this Act.]1