The deposit of Rs.25000 which is payable as security deposit with the Department: is it refundable or can it be adjusted against trax payale or other liability of the dealer?
Earlier, it could be adjusted against any tax/interest/penalty payable and after the end of 2years, it was refunded. But apparently, this has been changed from 1st May 2011??? What is the new provision?
WITH EFFECT FROM 01/05/11 SECUITY DEPOSIT OF RS. 25000/- UNDER VOLUNERY REGISTATION WILL NOT BE ADJUSTEBLE AGAINST TAX/INTEREST/PENALY.
THE S.D IS REDUNDABLE IN THE MANNER AND TIME AND ON FILFILLMENT OF SUCH CONDITIONS AS IS PRESCRIBE IN THE RULES. THE RULES 60A PROVIDES THAT THE SAME WILL BE REFUNDED ON APPLICATIONS WITHIN 6 MONTHS OF CANCELLATION OF REGISTRATION, WHERE REGISTATION IS CANCELLED WITHIN 3 YEARS. OTHER CASES THE DEALER MAY APPLY REFUND WITHIN 4YEARS FROM DATE OF REGISTRATION BUT AFTER COMPLITING 3 YEARS FROM DATE OF REGISTRATION.