Section 24A in The M.P. Vanijyik Kar Adhiniyam, 1994
24A. [ Furnishing of guarantee by the dealers. [Inserted by Section 2 of M.P. Vanijyik Kar (Sanshodhan) Adhiniyam, 2003 (32 of 2003) w.e.f. 30-9-2003.]
(1)Notwithstanding anything contained in Sections 22 and 23, the Commissioner, before issuing a permanent registration certificate, shall require the dealer, who is a company registered under the Companies Act, 1956 (No. 1 of 1956), to furnish personal/ corporate guarantee of the promoters for proper realisation of tax or any other sum payable under this Act, in such form and in such manner as may be prescribed.(2)Where a company registered under Section 22 or Section 23 and liable to pay tax under the Act ordinarily at the rate of rupees twelve thousand per quarter or rupees forty eight thousand per annum or above, fails to furnish returns under Section 26 in time or fails to pay the tax payable according to such returns or fails to furnish any return or fails to pay tax payable under the Act, the Commissioner may require to furnish personal/corporate guarantee of the promoters of such company for proper realisation of tax or any other sum payable under this Act, in such form and in such manner as may be prescribed.Explanation. - For the purpose of this Section-(1)the expression 'promotor' means -(i)who subscribes to the Memorandum of Article of Association, or(ii)who holds 20 per cent or more of the share capital directly or indirectly or in the name of his/her relatives, and(2)in the case of a corporate body is a subsidiary or holding company of that body and holds 20 per cent or more of the share capital.(3)the expression relatives shall have the same meaning as assigned to it in Companies Act, 1956 (No. 1 of 1956) or Income Tax Act, 1961 (No 43 of 1961).]
