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Indirect Tax Laws

Notes Advantages of Registration

The following are the advantages of registration:
1. A registered dealer has to pay actual sales Tax @ 4% only on goods purchased by him for
manufacture or resale and he buys the same against Form C. Otherwise, he will be charged
@ 10%.
2. Subsequent sales in the course of movement of goods by transfer of documents of title to
goods will be exempted from central sales-tax if, registered dealer effecting sales is able to
produce Form E-I.

Procedure for Registration

It consists of the folllowing:
1. The dealer must make an application to the concerned authority in the appropriate state, in
Form A within 30 days of the day when he becomes liable to pay tax. The form contains the
following details.
(i) Name of the manager of business.
(ii) Name and addresses of proprietor or partner of the business.

(iii) Date of establishment of business.
(iv) Date on which first inter-state sale was made.
(v) Name of the Principal place and other places of business in the appropriate state.
(vi) Particulars of any license held by the dealer.
2. Single Place of business: If a dealer has single place of business in the appropriate State and he
is registered in that state, he shall apply to the sales tax authority of that state only for obtaining
registration under central sales tax Act.
3. More than one place of business in the same state: If a dealer has more than one place of
business in the same state, he shall select one of these places as the principal place of business
and, get only one certificate of registration.

4. More than one place of business in different states: If a dealer has more than one place of
Business in different states, he will get a separate certificate of registration with respect to each
state.

5. Fees for Registration is Rupees twenty five to be paid in cash or court fee stamp.
6. The application has to be signed by, in case of –
 Sole proprietorship, the proprietor

 Partnership firm, any one the partner
 HUF, the karta
 Company, the director
 Government, authorized officer

Grant of Certificate of Registration Sec 7(3)

If the application is in order and assessing officer is fully satisfied with the facts contained
therein, he will register the dealer under this Act and issue a certificate of Registration in Form

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