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 VAT system is to rationalize the tax burden and bring down in general the price level and to bring in simplicity and transparency in the tax structure thereby improving the tax compliances and eventually to ensure revenue growth and for that registration plays vital role and for obtaining the same certain documents and process is involved  it is an effort to compile all the provisions relating to liability, amendment, cancellation of registration under the Punjab Vat Act, 2005.

Registration Liability

Who are Liable   Turnover Exceeds
A Manufacturer 1 Lac
A Person, running Restaurant or Hotel 5 Lac
A person who is running a bakery 10 Lac
An Importer of taxable goods for sale or use in Manufacturing activities within the State 1 Lac
A Person who receives goods on consignment or branch transfer basis from within or outside the State on which no tax paid under this Act 1 Lac
A person liable to pay purchase tax under Section 19 1 Lac
A person who wants voluntary registration 10 Lac
A person dealing in taxable goods, who is registered under the Central Sales Tax Act, 1956 Nil
Any other person for VAT 50 Lac
Any Person for TOT Registration 5 Lac

 Detail of Documents required for New Registration Number under the Punjab VAT Act, 2005 and Central Sales Tax Act, 1956.

1. Form VAT-1.

2. Central Sales Tax Form.

3. Rs.2, 000.00 for Registration Certificate Fee under Punjab VAT Act, 2005 &Punjab Municipal Fund.

4. Surety Bond or Bank Guarantee.

a) Under Punjab VAT Act, 2005 in favour of Excise & Taxation Officer- Cum- Designated Officer, Jalandhar.

b) Under CST Act, 1956, Jalandhar.

c) Each Rs. 50,000.00 ( Fifty Thousand Only)

5. Affidavit.

6. Purchase Bill outside the State as required under VAT & CST Act.

7. 4 Passport Size Photo.

8. Proof of place of Business.

9. Residence Proof of Person.

10. MOA and AOA in case of Company.

11. Bank Account of the Firm / Company.

12. Copy of PAN Card of the Firm / Company.

13. Partnership Deed in case of Partnership.

14. Nature of Business

15. Detail of Items required for manufacturing / resale / use in Work Contract.

Persons liable to register.

Section 21 (1) No person other than a casual trader, who is liable to pay tax under this Act, shall carry on business, unless he is registered under this Act.

(2) Every person required to be registered under sub-section (1), shall make an application for registration, within a period of thirty days from the date when such person becomes liable to pay tax under this Act, in the prescribed manner to the designated officer.

(3) If the designated officer is satisfied that the application for registration is in order, he shall, in accordance with such manner and on payment of such fee, as may be prescribed, register the applicant and grant him a registration certificate in the prescribed form:

Provided that if the designated officer is satisfied that the particulars contained in the application are not correct, or are incomplete or that any evidence or information required for registering the applicant, is not furnished, he may, after necessary inquiry and after giving the applicant an opportunity of being heard, reject the application for reasons to be recorded in writing.  However, the applicant may submit a fresh application for registration in accordance with the provisions of this Act:

Provided further that during the pendency of an application for registration, he shall file return and pay the due amount of tax, in the prescribed manner.

(4) Where a person has contravened the provisions of sub-section (1), the designated officer shall, subject to action under section 52 or section 60, as the case may be, register such person and grant him a registration and such registration shall take effect as if, it had been granted under sub-section (3) on the application made by the person.

(5) When any person, who was registered before the appointed day under the repealed Act, and continues to be so registered on the day, immediately before such appointed day, and is liable to pay tax under this Act on such appointed day, the designated officer shall, within thirty days of receipt of application in the prescribed form, issue to such person, in the prescribed manner, a fresh registration under this Act for VAT or TOT, as the case may be.

(6) For the purpose of identification of taxpayers, the Commissioner or the  designated officer, shall issue a VAT Registration Number ( hereinafter in short referred to as VRN) to every taxable person and TOT Registration Number (hereinafter in short referred to as TRN) to every registered person.

 (7) Every taxable person or a registered person, who is allocated a registration number, shall mention his VRN or TRN, as the case may be, in all returns, forms or any other documents, used for the purposes of this Act.

(8) Every person, who is liable to pay tax, and who is a 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 make a declaration to the designated officer, stating the name of the person or persons, who shall be deemed to be the manager or managers of such person’s business for the purposes of this Act.

(9) Save as otherwise provided in section 77, a registration, granted under this Act, shall be personal to the person to whom it is granted and shall not be transferable.

Voluntary registration for VAT

Section 22

(1) Subject to the provisions of sub-section (3) of section 6, any person except one dealing exclusively in goods declared tax-free under section 16, may apply in the prescribed manner to the designated officer for registration under this Act.

(2) The provisions of sub-sections (2), (3) and (5) of section 21, shall apply in respect of applications for registration under this section.

(3) Every person, who has been registered upon application made under this section shall, for so long as his registration remains in force, be liable to pay tax under this Act whether his gross turnover exceeds the taxable quantum or not.

Amendment of registration.

23. The designated officer may from time to time, by order in writing, amend registration on information furnished under section 76.

Cancellation of registration

24. (1) The designated officer may, on an application made to him, or otherwise, by an order in writing, cancel registration, on –

(a) an information received that a business, in respect of which a registration was granted under sub-section (3) of section 21, has been discontinued; or

(b) an information received that the person has violated any of the provisions of this Act or the rules made there-under; or

(c) non-filing of return or non-payment of due tax under this Act; or

(d) any other sufficient cause including misuse of the registration or cessation of liability to payment of tax under this Act; or

(e) the registration granted under the Central Sales Tax Act, 1956, to a person liable to pay tax by virtue of the provisions of section 7, but who is not otherwise liable to pay tax under section 6, has been cancelled.

(2) Where registration is cancelled under this section without making an application by the person concerned, no order for such cancellation shall be passed by the designated officer, without affording an opportunity of being heard.

Security from certain classes of persons.

25. (1) Every person applying for registration under this Act, shall furnish a security of rupees fifty thousand in the manner, prescribed for securing proper and timely payments of tax or any other sum, payable by him under this Act:

Provided that the security already furnished by a person registered under the repealed Act, shall be deemed to have been furnished under this Act.

(2) The designated officer granting registration, may, on application made by a person for release, discharge or refund of the security, order the release, discharge or refund of the whole security or any part thereof, furnished by him, if the same is not required

Explanation.- The designated officer shall not be required to retain security or surety furnished by a person on behalf of a taxable person or registered person, if the registration of such a person has been cancelled under this Act and nothing remains due against such a person.

(3) Where it appears expedient to the designated officer, granting registration, so to do, for the proper realisation of, tax payable under this Act, he may, at any time while such certificate is in force, by an order in writing and for reasons to be recorded therein, require the person, to whom the registration has been granted, to furnish within such time, as may be specified in the order and in the prescribed manner, such additional security, not exceeding rupees two lac in addition to the security, furnished under sub–section (1), as may be specified in the order, for the aforesaid purpose:

 (4) The designated officer, granting the registration, may, by an order in writing, for good and sufficient cause, forfeit or realise the whole or any part of the security or additional security furnished by a person for recovery of any amount of tax or penalty due or payable by a person:

Provided that no order shall be passed under this sub-section without giving the person concerned, an opportunity of being heard.

(5) In case the security is rendered insufficient because of the order made under sub–section (4), the person concerned shall furnish further security to make up for the amount, which has fallen short, in such manner and within such time, as may be prescribed.

(Authored by- J S BEDI Advocate, Email ID: bediadvocate@yahoo.co.in, Contact Number: 98140-66336)


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  1. Mangal Singh says:

    can two different dealer apply for the vat no from the same premises if it shows that they running their business independently.

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July 2024