surety in vat registration

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Sir

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

 

Vipin

8010359789

Replies (2)

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

 

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.

 


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