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surety in vat registration

Vipin Kumar (Accountant) (57 Points)

03 August 2010

Sir

Can a brother ( a registered dealer) give surety to his brother new firm.

Vipin

8010359789

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2 Replies

Harpreet (* * * * * *) (1670 Points)
Replied 03 August 2010

Yes ofcourse, Surety bond of Rs.1,00,000/- by any dealer who is registered under DVAT.

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Harpreet (* * * * * *) (1670 Points)
Replied 03 August 2010

An application for Registration is to be made in Form DVAT-04 with the prescribed fee.

A security not exceeding Rs 1 lakh is to be submitted along with the application for registration. The security amount can be reduced by a maximum of Rs 50,000 if you can provide certain documents with your registration application. The reduction in the security amount allowed for various documents is as follows.

· Last paid electricity bill in your name, Rs 10,000;

· Last paid telephone bill in your name, Rs 5,000;

· A PAN number, Rs 10,000;

· A document as proof of ownership of principal place of business, Rs 30,000;

· A document as proof of ownership of residential property, Rs 20,000; and

· A notarized photocopy of the passport of proprietor/ managing partner or managing director, Rs 10,000

Security may be in cash, bank guarantee, post office cash certificates, bonds/debentures, dealers' surety, or mortgage of immoveable property. The surety for registration may be revised by the Commissioner under some circumstances.