Contents -

1. Term , Dealer under Maharashtra Value Added Tax Act, 2002.
2. Provisions of the Act regarding registration.
3. Time - limit which an application for registration.
4. Fresh - Registration .
5. Provisions for Change in business.


Q:  Define the term "Dealer" under Maharashtra Value Added Tax Act, 2002? (April 2009)

Introduction -

The definition for Dealer is given under section 2(8) of the Maharashtra Value Added Tax Act, 2002. 
Under section 2(8) "dealer" means any person who for the purpose of for consequential to his engagement in or,  in connection with or incidental to or in the course  of, his business buys or sells, goods in the state whether for Commission, remuneration or otherwise and includes,- 

Explanation : 
In the said provision there are three parts:
1.  Any person who, for the purposes of or consequential to his a in engagements 
2. In  connection with or incidental to
3.  In the course of, his  business busy or sells

(a) A factor,  broker, commission agent, del-credere agent or any other mercantile  agent, by whatever name called,
 who for the purpose of or  consequential to his engagements in or in connection   with or incidental to or in the course of the business, buys or sells any goods on behalf of any principal or  principals whether disclosed or not;

(b)  An auctioneer  who sells or  auctions goods weather acting as an agent or otherwise or, who organizes  the sales of goods or conducts the auction of goods whether or not  he has the authority to sell the goods belonging to any principle whether disclosed  or not and whether the offer of the intending  purchaser is accepted by him or by the principal or a nominee  of the principal;

(c)  A non resident dealer or as the case may be, an agent. residing in the state of a non-resident dealer, who buys or sells goods in the state for the purpose of for consequential  to his engagement  in or in connection with or incidental to or in the course of,the business.

(d) Any society, club or other association of person which buys  goods from, or sells goods to, it's  member;

Explanation : 
For the purpose of this clause, each of the following persons, bodies and entities Who sells any goods whether by auction  or otherwise, directly or through an agent for cash, or for deferred  payment, or for any other valuable consideration, shall, notwithstanding anything contained in clause (4) any other provision of this Act, be deemed to be a dealer, namely:

(i)  Customs Department of the Government of India administering  the Custom Act,1962;

(ii)  Departments of Union Government and any department of any state Government;

(iii)  Incorporated or unincorporated societies, clubs or other association of persons;

(iv) Insurance and Financial corporation,   institutions or companies and Banks included in the second Schedule to the Reserve Bank of India Act, 1934; 

(v)  Local authorities 

(vi) Maharashtra State Road Transport Corporation Corporation constituted Under The Road Transport Corporation Act, 1950; 

(vii)Port Trusts; 

(viii)Public Charitable Trust registered under the Bombay public trust Act,1950;

(ix) Railway Administration as  defined under the Indian Railway Act, 1989 and Konkan Railway Corporation Limited;

(x)  Shipping and Construction companies,Air  Transport companies, Airlines and Advertising Agencies;

(xi) Any other Corporation, company, body or authority owned or constituted by, or subject to administrative control, of the central government, any State  government or any local authority;

Exception 1:  
An agriculturist Who sells exclusively agriculture produce grown on land cultivated by him personally, shall not to be Deemed to be a dealer within the meaning of this clause.

Exception 2: 
An educational institution carrying on the activity of manufacturing, buying or selling goods, in the performance of its functions for achieving its objects, shall not be Deemed to be a dealer within the meaning of these clause.

Exception 3:
A transporters holding permit for transport vehicle (including cranes) granted under the motor vehicles Act, 1988, which are used or adopted to be used for hire or reward shall not be Deemed to be a dealer within the meaning of this clause in respect of sales or purchase of such transport vehicles or parts. components or accessories  thereof.


Q: Explain the provisions of the Act regarding registration. Who may apply for registration? What is the time - limit which an application for registration has to be made ? (Apr. 2008, Oct. 2010, Oct. 2011, March 2012) 

If any dealer was a registered for Maharashtra Sales Tax Act on 1.4. 2005, he will automatically be registered under Maharashtra value added tax 2002 from 1st April 2005. if his turn over in the financial year 2004 -05 was before the threshold prescribed limit of the new act, he must charge VAT on his sale and file the return.  Threshold limit is based on the total turnover of sales or purchase in a year  commencing 1st April.  section 16 to 19 under Maharashtra value added tax 2002 are relating to the registration.

Section 16 (1) : Registration -
No dealer shall, while being liable  to pay tax under this Act, be engaged  in the business as the dealer, unless people possess a valid certificate of registration as provided by this Act: 

1. Provided that the provisions of this sub-section shall be deemed  not to have been contravened, if the dealer having applied, within the prescribed time, for such registration as provided in this section is engaged  is such business:
Provided further that if any dealer, holds the certificate of registration granted under the Bombay Sales Tax Act, 1959, which is effective or valid  immediately before for the  appointed  day, it shall not be necessary for him to apply for a fresh certificate under this section so long as the Said certificate is not duly cancelled under this Act: 
Provided also that, a dealer holding an effective certificate of registration or, as the case may be ,a licence granted before the appointed day, under any laws other than the Bombay Sales Tax Act, 1959, shall notwithstanding the fact that he is holding such effective. certificate be required to apply for grant of certificate of registration under this section.

2. Every dealer required by sub- section (1) to process for certificate of registration or one who voluntarily desire to get registered shall apply in the   prescribed manner to the prescribed authority for grant of such registration.
 Provided that, in the case of an application made by a person who voluntarily  desires to get registered, the certificate of registration shall not be granted unless the applicant has deposited an amount of Rs.  25,000/- in the Government treasury as advance towards the tax, interest or penalty, Ti if any, that may becomes due.  The amount so deposited may be adjusted against the text payable according to the  return required to be filed in the year in which the registration is granted or in the succeeding  year. The amount of deposit in excess of the amount due from him, by way of tax, interest or penalty, if any, shall be refunded as provided in section 50 or, as the case may be, section 51.

3. If the prescribed authority, after scrutiny of the application and after such inquiry as it deems fit,  is satisfied that the application for registration is in order and the prescribed  conditions,  if any, are fulfilled, register the applicant and issue to him a certificate of registration in the prescribed  from:

Provided that, the prescribed authority, on finding that the application is not complete or that the information or documents prescribed  for grant of registration certificate have not been furnished,  or, (.....) the prescribed  conditions are not fulfilled, may, after giving the applicant a  reasonable opportunity of being heard, reject application for reasons to be recorded in  writing.

4. The Commissioner may, after considering any information furnished under any of the provisions of this act or otherwise received, amend from time to time any certificate of registration.

5. A person or a dealer who has got himself registered  shall be liable to pay tax during the period in which his registration certificate is effective,  notwithstanding the fact that subsequent to the it is found that no registration certificate was necessary in his case.

6. Where,-
(a) any business, in respect of which a certificate of registration has been issued under this section has been  discontinued or otherwise disposed of, or has been transferred.

(b) The turnover of sales or the turnover of purchase of a registered dealer who has become liable to pay tax under Section 3 has during any year not exceeded the relevant limit specified in sub-Section (4) of section 3,
Provided that, here the Commissioner is satisfied that any business in respect of which a certificate has been issued under this section has been discontinued or disposed of and the dealer has failed to apply under clause(a)  as aforesaid  for cancellation of registration, the Commissioner may, after giving the dealer a reasonable opportunity of being hard, cancel the registration with effect from such date as he may fix to be the date in accordance with the rules, if any, from which the business has been discontinued.
Provided further that, where the commissioner's is satisfied that any person who has voluntarily  got himself  register raided has not commenced business within 6 months from the date of registration, the commissioner  may, after giving the dealer a reasonable opportunity of being hard, cancel the registration certificate with the effect from such date as he may fix  in accordance with the rules.
Provided that the cancellation of a certificate of registration on an application or otherwise shall not affect the liability  of the dealer to pay the tax including any penalty, amount forfeited  and interest due for any period ending on or before the date of cancellation  whether such tax including any penalty, amount forfeited and interest is assessed before the date of cancellation but remain unpaid,  or is  assessed thereafter. 

7. The commissioner  shall, by such date as he may  notify in the Official Gazette, prepare a list of all generated dealers and may amend the list, from time to time. Any person may make an application in the prescribed form to the Commissioner for a  certified copy of any extract from the list and Thereupon the Commissioner,  shall for furnish a copy of the extract to the applicant.

8.Save  otherwise provided in sub-section (9), a certificate of registration granted under this section and any certificate that may be granted under this Act, shall be personal to the dealer or a personal to whom it is granted, and shall not be transfer for Transferable.

9.Where a registered dealer -
a. Effect a  change in the name of his business, or

b. Is a firm, and there is a change in the constitution of the firm  without dissolution thereof or

c.  Is a Trustee of a trust, and there is a change in the Trustee thereof or

d. Is  a Guardian of a ward,and there is a change in the guardian or termination of guardianship,or

e. Is a Hindu Undivided family and there is a change of karta, or 

f. Is a private limited company which is a converted into a public limited company, then, merely  by reason of occurrence of any of the changes aforesaid,  it shall not be necessary for the dealer, or the firm  with the changed constitution,  or the new Trustee, or new Guardian or the ward or the new karta or the public limited company 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, where  necessary. be a amended  and any other,  certificate granted under the act, rules are notification shall also continue to be amended  necessary with effect from the from the appropriate  date.

Q. Short note on - Fresh - Registration (April 2011 , October 2011)

Section (17) provides for fresh registration :

1. Every registered dealer who holds, on such date as a commissioner may by notification in the Official Gazette  specify, a certificate of  registration, which is no which is valid on the said date (hereinafter,  in this section, referred to as "the existence certificate of registration"),shall  obtain in lieu of the existing certificate of registration if a certificate of registration a fresh certificate of registration as provided in this section.

2. Every dealer, who is required to obtain a fresh certificate under sub-section (1), shall apply in such form, manner and time and to such authority as may be prescribed ;and such application shall be accompanied by the existing certificate of registration together with all additional copies, thereof, if any, issue to him.

3. On receipt of such application, the prescribed authority shall, subject to rules, issue a fresh certificate of registration, in the prescribed form to the applicant ;and thereupon the  fresh certificate of registration, so issued ,shall, for all the purposes of this Act, be Deemed to be a certificate of registration issued under section 16.

4. Without prejudice to the other provisions of this Act, all the existence certificate of registration shall stand cancelled with effect from such date as the Commissioner may notify in the official gazette.

5. The Commissioner may by the notification issued under sub section (1) or (4), also provide that such notification shall apply only the two such class of registered dealer as are specified in the said notification and such notification may be issued by him from time to time.

6. The provisions of this section shall mutatis mutandis apply in respect of any other certificate issued by or under the provision of this act as they apply in respect of the certificate of registration.

Q. Short notes on Provisions for Change in business.

Changes in the Business -

The dealer should furnish the following information to the authority, if any change in there in the business. There are different limit for different changes. Section 18 provides the changes in the business. If the business discontinued, the dealer should notified to the sales tax office, within 30 days. In other changes he must notify within 60 days to the sales tax office.

Section 18 : Information to be furnished regarding changes in business etc.

1. Any registered dealer liable to pay tax under this Act, who -

A) Transfer by way of sale or otherwise dispose of his business or any part thereof, or effect or knows of any other change in the ownership of the business.

B) Discontinues is business or changes in the place thereof or opens a new place of business.

C) Changes the name of his business.

D) Enters into a partnership in regard to his business.

E) Applies for or has an application made against him or insolvency or liquidation.

F) Being a company is involved in merger, de-merger or amalgamation of companies, shall within the prescribed time inform the prescribed authority accordingly.

2. Where any dealer liable to pay tax under this Act,

A) Dies, his executive administrator or other legal representative.

B) Where he is a firm, a Hindu undivided family or an association of persons and there is a change in the constitution of such firm, Hindu undivided family or Association, either by way of dissolution, disruption, partial partition or partition, or otherwise then every person who was a partner. Karta or a member of such firm, Hindu undivided family or association.

C) Transfer of otherwise disposes of his business in the circumstances mentioned in sub section (4) of Section 44, then any person from whom and every person to whom the business is so transferred, shall in the prescribed manner, inform the said prescribed authority of such death, changes in the constitution, dissolution, partial partition. Partition, disruption or transfer.

Section 19, Declaring the Name of Managers in the Business :

According to Section 19, the dealer is required to declare the name of Manager of Business and Permanent Account Number.

1. Every dealer, who is liable to pay tax and who is Hindu undivided family, or an association of persons, club or society or firm or company or who is engaged in business as the Guardian or Trustee or otherwise on behalf of another person shall, within the period prescribed send to the authority prescribed, a declaration in the manner prescribed stating the name of the person or persons who shall be deemed to be the manager all managers of such dealers business for the purpose of this act. Such declaration shall be furnished at the time of registration whenever applicable and may be reserved in the prescribed manner, from time to time.

2. Every dealer livable to pay tax under this act who is liable to obtain a permanent account number under the Income Tax Act, 1961, shall communicate to the Commissioner, in the prescribed time and manner the said number if he has obtained the same and in any other case shall state whether he has applied for the same and provide the details of the application.