Central Motor Vehicles (Fifteenth Amendment) Rules, 2022.
Notification issued regarding comprehensive reforms in the Trade Certificate regime under the Central Motor Vehicle Rules, 1989.
Ministry of Road Transport & Highways (MoRTH) vide GSR 703(E) dated 14 September 2022 has notified comprehensive reforms in the Trade Certificate regime under the Central Motor Vehicle Rules, 1989.
Due to certain anomalies in the existing rules, the applicability of Trade Certificate was open to interpretation in many cases, leading to harassment of many business establishments. Moreover, the application for a trade certificate was required to be filed physically at the RTO which was a time-consuming process.
In an endeavour to promote ease of doing business, MoRTH has notified new rules to simplify and streamline the Trade Certificate regime.
The key provisions of the new rules are as follows:
1. Trade Certificate will be required only in case of vehicles which are neither registered nor temporarily registered. Such vehicles can only be in the possession of a dealer/ manufacturer/importer of motor vehicles, or a test agency specified in rule 126.
2. The application for Trade Certificate and Trade Registration Marks can be made electronically on the Vahan portal, without the need to visit the RTO. Further, the applicant can apply for multiple types of vehicles in a single application.
3. The time period for grant or renewal of trade certificate has been fixed at 30 days, wherein applications not disposed within 30 days shall be deemed approved.
4. The validity of the Trade Certificate has been increased from 12 months to 5 years.
5. A dealership authorisation certificate (Form 16A) has been introduced to bring about uniformity across dealership authorisations. The trade certificate has been made co-terminus with the dealership authorisation.
6. Display of dealership authorisation certificate in showrooms/godowns has also been mandated.
7. The date of implementation is proposed w.e.f. 1st November 2022. The existing trade certificates will continue to be valid till their renewal is due.
Click here to see Gazette Notification
MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
NOTIFICATION
New Delhi, the 14th September, 2022
G.S.R. 703(E).Whereas the draft rules further to amend the Central Motor Vehicles Rules, 1989, were published, as required by sub-section (1) of section 212 of the Motor Vehicles Act, 1988 (59 of 1988), vide notification of the Government of India in the Ministry of Road Transport and Highways, number G.S.R. 340 (E), dated the 5th May, 2022 in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) dated the 5th May, 2022 inviting objections and suggestions from all persons likely to be affected thereby before the expiry of the period of thirty days from the date on which the copies of the Official Gazette containing the said notification were made available to the public;
And whereas, copies of the said notification were made available to the public on the 5th May, 2022;
And whereas, the objections and suggestions received from the public in respect of the said draft rules have been duly considered by the Central Government;
Now, therefore, in exercise of the powers conferred by section 39 of the Motor Vehicles Act, 1988 (59 of 1988), the Central Government hereby makes the following rules further to amend the Central Motor Vehicles Rules, 1989, namely:-
1. Short title and commencement. – (1) These rules may be called as Central Motor Vehicles (Fifteenth Amendment) Rules, 2022.
(2) They shall come into force with effect from the 1st day of November, 2022.
(3) Trade certificate granted or renewed, before the date of enforcement of these amended rules, shall continue to remain in force till the date of their expiry, subsequent renewal of such trade certificates shall be as per amended rules.
2. In the Central Motor Vehicles Rules, 1989 (hereinafter referred to as the said rules), for rule 33, the following rule shall be substituted, namely: –
“33. Condition for exemption from registration. — For the purpose of the proviso to section 39, a motor vehicle in the possession of any manufacturer or dealer or importer of motor vehicle or testing agency specified under rule 126, shall be exempt from the necessity of registration, subject to the condition that such manufacturer or dealer or importer of motor vehicle or testing agency obtain a trade certificate from the registering authority having jurisdiction in the area in which the said manufacturer or dealer or importer of motor vehicle or testing agency have places of business, in accordance with the provisions of this Chapter.”.
3. In rule 34 of the said rules, –
(i) in sub-rule (1), –
(a) after the words “trade certificate shall be made”, the words “eletronically on the VAHAN portal” shall be inserted;
(b) after the words “fee as specified in rule 81”, the words “electronically” shall be inserted; (c) the following proviso shall be inserted at the end, namely: –
“Provided that the application by a dealer of motor vehicle shall also be accompanied b a dealership authorisation certificate in Form 1 6A issued electronically on portal by the concerned manufacturer of motor vehicle”;
(ii) in sub-rule (2), the words “separate” shall be omitted;
(iii) after sub-rule (2), the following sub-rule shall be inserted, namely: –
“(3) Numbers of trade registration marks required shall be specified in the application.”
4. For rule 35 of the said rules, the following rule shall be substituted, namely: – ³
35. Grant or renewal of trade certificate. —
(1) On receipt of an application for the grant or renewal of a trade certificate, the registering authority may, if satisfied, issue to the applicant trade certificate, electronically on portal, in downloadable and printable form in Form 17, within thirty days from the date of receipt of the application.
(2) If application is not disposed of within the said period of thirty days, the application shall be deemed to be approved and trade certificate shall be deemed to be granted or renewed through the portal.
(3) A trade registration mark shall be the trade certificate number followed by four digit numerals starting from 0001 to 9999, for example: AB 12 A 1234 TC 0001, in which, –
(i) AB Represents State Code,
(ii) 12 Represents RTO Code,
(iii) A – Represents serial number of class of vehicle as prescribed in Rule 34(2) i.e. from A to J,
(iv) 1234- Represents four digit unique identification number to be assigned by the concerned authority to the holder of a trade certificate,
(v) TC Represent trade certificate.
(4) No application for trade certificate shall be refused by the registering authority unless the applicant is given an opportunity of being heard and reasons for such refusal are given in writing.
(5) Trade certificate along with dealership authorisation certificate shall be exhibited at a conspicuous place at show room and workshop or service center”.
5. After rule 35 of the said rules, the following rules shall be inserted, namely: –
“35A. Application for additional trade registration mark. (1) An application for the grant of additional trade registration mark shall be made electronically on portal in Form 1 7A to the registering authority which granted the trade certificate and shall be accompanied by the appropriate fee as specified in rule 81, to be paid electronically on the portal.
(2) On receipt of an application for the grant of additional trade registration mark in respect of a trade certificate, the registering authority may, if satisfied that the applicant holds a valid trade certificate and requires additional trade registration mark, issue to the applicant additional trade registration mark, in Form 17B within fifteen days from the date of receipt of the said application.
35B. Intimation of change of address of place of business in trade certificate. — (1) If the place of business specified in the trade certificate is changed, then the holder of trade certificate shall immediately intimate to the authority which granted the trade certificate, about such change, electronically on portal in Form 1 7C accompanied by the appropriate fee as specified in rule 81.
(2) On receipt of intimation of change of place of business, the registering authority shall, if satisfied that the applicant holds a valid trade certificate, record new address in the trade certificate.”.
6. Rule 37 of the said rules shall be renumbered as sub-rule (1) thereof, and (a) in sub-rule (1) as so numbered, for the words “twelve months”, the words “five years” shall be substituted;
(b) after sub-rule (1) as so numbered, the following sub-rule shall be inserted, namely :-
“(2) Trade certificate shall be integrated with dealership authorisation and on cancellation of dealership authorisation certificate by manufacturer of motor vehicles, the trade certificate shall automatically become invalid.”.
7. Rule 38 of the said rules shall be omitted.
8. In rule 39 of the said rules, –
(a) in sub-rule (1), for the words and figures “the dealer or manufacturer of automobiles or automobiles ancillaries or a test agency specified in rule 126”, the words “the holder of tr de certificate” shall be substituted;
(b) for sub-rule (2), the following sub-rule shall be substituted, namely: –
“(2) The trade registration mark shall be in white colour on red background as per dimensions specified in rule 51 and shall be exhibited on front and rear of a motor vehicle.”.
9. In rule 40 of the said rules, in the heading for the words “Restrictions on use of trade certificate or trade registration mark and number”, the words “Restrictions on use of trade registration mark” shall be substituted.
10. In rule 40 of the said rules, –
(a) for the word “certificate”, the words “registration mark” shall be substituted;
(b) for the words “certificate or the number”, the words “trade registration mark” shall be substituted
11. In rule 41 of the sa d rules, in the heading, for the words “Purposes for which motor vehicle with trade certificate may be used”, the words “Purposes for which motor vehicle with trade registration mark may be used” shall be
12. In rule 41 of the said rules,
(a) for the words “trade certificate” the words “trade registration mark” shall be substituted;
(b) the clause (h) shall be omitted.
13. In rule 43 of the said rules, –
(a) in the heading, for the words “Register of trade certificate”, the words “Register of trade registration marks” shall be substituted.
(b) in sub-rule (3), after the words “Form 19”, the word “which” shall be inserted.
14. After rule 43 of the said rules, the following rules shall be inserted, namely: –
³43A. Register of inventory. — Every dealer of motor vehicles holding a trade certificate shall maintain a register of inventory of motor vehicles electronically in Form 19A on the portal.
43B. Displaying vehicle price at show room. – Every dealer of motor vehicles holding a trade certificate shall display model wise vehicle sale price at conspicuous place in his business premises, displayed vehicle price shall be with bifurcation of all applicable taxes and fees.”.
15. For rule 44 of the said rules, the following rule shall be substituted, namely: –
“44. Suspension or cancellation of trade certificate. – If the dealership authorisation certificate is cancelled by the manufacturer of motor vehicles or if the registering authority has reason to believe that the holder of any trade certificate has not complied with the provisions of rules 39 to 43B, the registering authority shall report the fact along with reasonable proof, to the head of the Motor Vehicles Department established under section 213 and the said head of the department may, after giving the holder of trade certificate an opportunity of being heard, suspend or cancel the trade certificate held by him.”
16. In rule 45 of the said rules,-
(a) the words “of the registering authority” shall be omitted;
(b) for the words “head of the Motor Vehicles Department established under section 213”, the words “any authority authorised by the respective State Governments and Union territory Administrations in this respect” shall be substituted.
17. In rule 46 of the said rules, in sub rule (1), for the words “the registering authority” the words “the concerned authority” shall be substituted.
18. In rule 81 of the said rules, in the Table, for Sl. no. 1 and 2, and the entries relating thereto, the following entries shall be substituted, namely:-
| (1) | (2) | (3) | (4) | (5) |
| “1 | Grant or renewal of trade certificate in respect of each trade registration mark or additional grant of each trade registration mark : | 34(1), 35A(1) | ||
| (a) Motorcycle | Two thousand five hundred rupees | |||
| (b) Adapted vehicle | Five hundred rupees | |||
| (c) Others | Five thousand rupees | |||
| 2 | Intimation for change of address of place of business in trade certificate | One thousand rupees | 35B (1) | ”. |
19. In the said rules, for Form 16, the following Form shall be substituted, namely :-
³FORM 16
[See rule 34(1)]
FORM OF APPLICATION FOR GRANT OR RENEWAL OF TRADE CERTIFICATE AND TRADE
REGISTERATION MARKS
To
The Registering Authority,
…………………………….
…………………………….
I/We hereby apply for issue of/renewal of a trade certificate(s):
| 1. | Applicant’s name | …………………… |
| 2. | Son / wife / daughter of | …………………… |
| 3. | Applicant’s full address (proof to be attached) | …………………… |
| 4. | Address of place of business (in case of dealers of motor vehicles): | …………………… |
| (a) Address of show room | …………………… | |
| (b) Address of workshop(s)/ Service center(s) | …………………… | |
| (c) Address of godown for vehicles | …………………… | |
| 5. | Whether the applicant is a manufacturer of motor vehicles or dealer of motor vehicles or a test agency specified under rule 126 of the said rules or importer of motor vehicles or any entity specified by central government, (In case applicant is dealer of motor vehicles, dealership authorisation certificate issued by vehicle manufacturer shall be submitted with application) | …………………… |
–
| Sr. No. | Class of Vehicle | No. of Trade registration marks required | Fee amount paid | Receipt number |
| (1) | (2) | (3) | (4) | (5) |
Declaration
I/we do hereby declare that the trade certificate is required by me / us for bona fide trade purpose.
Place………………………
Signature of the Applicant
Date………………………
or digital/e-signature of applicant
*Strike out whichever is inapplicable.
QR Code”.
20. In the said rules, after Form 16, the following Form shall be inserted, namely: –
³FORM 16A
[See rule 34 (1)]
CERTIFICATE OF AUTHORISATION BY MANUFACTURER OF MOTOR VEHICLES
Dealership authorisation certificate number (to be auto generated through portal)
1. Name of Vehicle manufacturer: ………………………………………
2. Company registration number: …………………………………………
3. GST registration number: ………………………………………
4. PAN: …………………………
5. Address: ……………………………
6. E- Mail address: …………………………………
We (Name of Vehicle manufacturer) having the above details hereby certify that we have appointed (name of dealer of motor vehicles) ——————— as our authorised dealer for sale and service of motor vehicles of—————-
class manufactured by our company. Details of dealer authorised by us are as follows-
1. Name of dealer …………………………………………………
2. Mobile number(s) of dealer: ……………………………………………………… ….
3. E-mail address of dealer: ……………………………………… .
4. GST registration number of dealer…………………………
5. PAN of dealer………………………
6. Address of place of business of dealer:
(a) Address of show room ………………………………………………
(b) Address of workshop(s)/ Service center(s)………………………….
(c) Address of godown for vehicles……………………………………….
(d) State/UT-
(e) RTO code-
We hereby declare that to the best of our knowledge and belief, information furnished is true. We undertake to hold ourselves responsible for any inaccuracy or suppression of information and we also declare that dealer authorised by us has adequate place of business, sufficient infrastructure, tools and skilled manpower for servicing of vehicles. We also undertake that if at any time above dealership authorization is revoked by us, we will immediately cancel dealership authorisation certificate on the portal and intimate registering authority by whom the trade certificate is issued/ renewed.
Signature of vehicle manufacturer”
21. In the said rules, for Form 17, the following Form shall be substituted, namely :-
|
1. |
Trade certificate number | …………… |
| 2. | Full name and address of certificate holder | …………… |
| 3. | Address of place of business (in case of dealers of motor vehicles): | |
| (a) Address of show room | …………… | |
| (b) Address of workshop(s)/ Service center(s) | …………… | |
| (c) Address of godown for vehicles | …………… | |
| 4. | Date of expiry of certificate | …………… |
–
| Sr. No. | Class of Vehicle | Dealership authorization certificate number (in case of dealer of motor vehicles) | No. of Trade registration marks allotted | Fee amount paid | Receipt number |
| (1) | (2) | (3) | (4) | (5) | (6) |
| 0001 to **** |
Station…………………………
Date………………………
Registering Authority (Digitally signed)
Valid throughout India
QR Code”.
22. In the said rules, after Form 17, the following Forms shall be inserted, namely: –
“FORM 17A
[See rule 35A (1)]
FORM OF APPLICATION FOR GRANT OF ADDITIONAL TRADE REGISTRATION MARKS To
The Registering Authority,
I/We hereby apply for grant of additional Trade registration marks –
1. Applicants name: ……………………………………
2. Son / Wife / Daughter of: ………………… ……………………………………
3. Applicants full address-
4. Address of showroom (in case of dealers of motor vehicles) –
| Sl. No. | Trade Certificate number | Validity of trade certificate |
Class of vehicle |
Number of trade registration marks allotted | Additional trade registration marks required |
Amount of fee paid |
Receipt number |
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) |
| From Serial no. 0001 to serial no. – |
Signature of the applicant or digital/ e-signature of applicant
FORM 17B
[See rule 35A (2)]
GRANT OF ADDITIONAL TRADE REGISTRATION MARKS
1. Full name and address of certificate holder……………………………………
2. Address of showroom (in case of dealers of motor vehicles) –
|
Sl. No. |
Trade number | Certificate | Class of vehicle | Additional trade registration marks allotted | Amount paid of fee | Receipt number |
| (1) | (2) | (3) | (4) | (5) | (6) | |
| From Serial no. – to serial no. – |
QR Code
Station………………………………
Date…………………………………..
Registering Authority
Digitally signed
Valid throughout India
FORM 17C
[See rule 35B (1)]
INTIMATION FOR CHANGE OF ADDRESS OF PLACE OF BUSINESS
To
The Registering Authority,
………………
………………
Address of place of Business recorded in trade certificate has been changed, I/We hereby request for recording changed address in trade certificate –
1. Applicants name: …………………………………………………
2. Son / Wife / Daughter of: ………………………………………………………
3. Applicants full address
4. Address of place of Business (in case of dealers of motor vehicles):
(a) Address of show room –
(b) Address of workshop(s)/service center(s) –
(c) Address of godown for vehicles –
5. Trade certificate number————-
6. Validity of Trade certificate———
Signature of the Applicant or digital
signature/e signature of applicant”.
23. In the said rules, Form 18 shall be omitted.
24. In the said rules, for Form 19, following Form shall be substituted, namely: –
“FORM 19
[See rule 43]
E- REGISTER TO BE MAINTAINED BY THE HOLDER OF TRADE CERTIFICATE ON PORTAL
1. Dealer Name-
2. Dealer Show room address-
3. District-
4. State-
5. Trade certificate number-
6. Dealership authorization certificate number (in case of dealers of motor vehicles) –
|
Sr. No. |
Class of motor vehicle |
Chassis number of motor vehicle | Purpose for which vehicle sent out of premises |
Driver’s name | Driver’s license no. | Date and hours of leaving the premises by the vehicle | Date and hours of return to premises or reaching destination by the vehicle | E-signature/ digital signature of person authorized by holder of trade certificate |
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
| “. |
25. In the said rules, after Form 19, the following Form shall be inserted, namely:-
“FORM 19A
[See rule 43A]
Digital Register of inventory to be maintained on VAHAN portal
1. Dealer Name-
2. Dealer Show room address-
3. District-
4. State-
5. Trade certificate number-
6. Dealership authorisation certificate number-
| Sl. No. | Vehicle Class | Chassis number | Engine Number | Date of receipt of vehicle from manufacturer | Date of receipt of vehicle from another dealer |
| (1) | (2) | (3) | (4) | (5) | (6) |
| Name of dealer from whom vehicle is received |
Date of transfer of vehicle to another dealer | Name of dealer whom vehicle is transferred |
Date of submission of application for registration / TR | Registration number /TR Number |
[F. No. RT-1 1036/193/2021-MVL]
MAHMOOD AHMED, Jt. Secy.
Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i), vide notification number G.S.R.590(E), dated the 02nd June,1989 and last amended vide notification number G.S.R.660(E), dated the 26th August, 2022.
