Section 17(2) in The Kerala Value Added Tax Act, 2003
(2)Notwithstanding anything contained in sub-section (1), the registering authority may, at the time of registration, demand security by order in writing, from every dealer effecting first sale of goods within the State, an amount not exceeding one half of the tax payable on the turnover of the dealer for the year as estimated by the registering authority.Provided that the registering authority shall have the power to demand at any time additional security if such authority has reason to believe that the turnover estimated under sub- sections (1) or (2) was too low.Provided further that no security or additional security shall be demanded under this sub-section from a dealer falling under clause (ii) of sub-section (2) of section 15.
