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State of Madhya Pradesh - Section

Section 5 in The M.P. Vanijyik Kar Niyam, 1995

5. Application and procedure for grant of licence.

(1)A registered dealer whose yearly turnover in respect of all goods specified in Schedule I and Schedule II does not ordinarily exceed five lac rupees shall be eligible for a licence under Section 18.
(2)The fee for grant of licence in respect of goods specified in Schedule IV shall be as under :
(a) in the case of goods liable to tax at the rate of 2 percent- 2 per cent of the amount of turnover;
(b) in the case of goods liable to tax at the rate of 4 per cent-  
  (i) upto the turnover of rupees one lac: 2 percent of the amount of the turnover
  (ii) turnover exceeding rupees one lac: Rs. 2,000 plus 4 per cent of the amount by which the yearlyturnover exceeds Rs. one lac.
(c) in the case of goods liable to tax at the rate of six percent-  
  (i) upto the turnover of rupees one lac: 3 per cent of the amount of the turnover
  (ii) turnover exceeding rupees one lac: Rs. 3,000 plus 6 per cent of the amount of the turnoverexceeding rupees one lac.
(d) [ [Inserted by Notification No. A-5-6-2000-ST-V (64) dated 23-7-2001.] in case of goods liable to tax at the rate of 8 percent.  
  (i) upto the turnover of Rs. one lac 4 percent of the amount of the turnover.
  (ii) turnover exceeding Rs. one lac Rs. 4,000/- plus 8 percent of the amount of turnover exceedingRs. One lac.]
Provided that the fee for grant of a licence in respect of goods specified in entry 5 of Schedule IV shall be payable on the taxable turnover of such goods :Provided further that when the licence is granted with effect from the date of receipt of the application, the fee payable under sub-rule (2) shall be determined as under :
(i)in respect of a registered dealer who commences his business during the year for which licence is applied for, or in respect of a registered dealer who has no turnover for the period of previous year corresponding to the period for the year for which licence is applied for, on the estimated turnover for a period from the date or receipt of the application till the end of the year in respect of which it is granted;
(ii)in respect of a registered dealer not falling in clause (i) on the turnover of the part of the previous year corresponding to the period for which the licence is granted.
(3)
(a)An application for grant of licence under Section 18 shall be made by a registered dealer in Form 1 so as to reach the licensing authority not later than 30 days after the commencement of the year for which licence is applied for or the commencement of the business in that year after the date of his registration, as the case may be;
(b)Every such application shall be-
(i)signed by the proprietor of the business or in the case of a firm or a partnership, by a partner or director of the firm or in the case of Hindu undivided family business by the manager or karta of the Hindu undivided family or in the case of a company incorporated or deemed to be incorporated under the Companies Act, 1956 (No. 1. of 1956), or any other law for the time being in force by the principal officer managing the business or in the case of society, club or association, by the president or secretary responsible for the management of such society, club or association and in the case of a registered dealer who resides outside that State but who has a place of business in the State, by his manager or agent; and
(ii)verified in the manner provided in the said form :
Provided that a registered dealer carrying on business on the date of commencement of the Act may apply for a licence within sixty days from the date of publication of these rules in the Madhya Pradesh Gazette :[Provided also that the registered dealer covered under clause (d) of sub-rule (2) on the date of coming into force of the said clause, may apply for a license within sixty days from the date of publication of these rules in Madhya Pradesh Gazette.] [Inserted by Notification No. A-5-6-2000-ST-V(64) dated 23-7-2001.]
(4)The registered dealer shall also file along with his application under sub-rule (3) a copy of the treasury receipt challan in Form 39 showing the deposit into the Government Treasury not less than half of the amount of fee prescribed under sub-rule (2).
(5)
(a)If the application for grant of a licence for any year is received from a registered dealer within the period specified in sub-rule (3) the licence shall be granted from the date of commencement of such year.
(b)If the application for grant of a licence for a part of any year from a registered dealer commencing his business in that year is received within the period specified in sub-rule (3), the licence shall be granted from the date of validity, of his registration certificate.
(c)If the application for grant of licence under the proviso to sub-rule (3) is made within the time specified therein, the licence shall be granted from the date of commencement of the said provision.
(d)If the application for grant of licence under sub-rule (3) is received after the expiry of the period specified therefor, the licence shall not ordinarily be granted from the date specified in [clause (a) or clause (b) or clause (c) or clause (d)] [Substituted by Notification No. A-5-6-2000 ST-V(64) dated 23-7-2001.] but shall be granted from the date of application :
Provided that in the case of any registered dealer the Licensing Authority is satisfied that the said dealer was prevented from making the application in the prescribed period, it may for reasons to be recorded in writing, direct that the licence be granted to such dealer with effect from the date specified in [clause (a) or clause (b) or clause (c) or clause (d)] [Substituted by Notification No. A-5-6-2000 ST-V(64) dated 23-7-2001.] as the case may be.
(6)On receipt of the application under sub-rule [(3)] [Substituted by Notification No. A-5-2-96-ST-V(8), dated 9-2-99 (w.e.f. 9-2-99.).] the Licensing Authority may, if it is satisfied after making such enquiry, as it deems fit, that the turnover or taxable turnover as the case may be, and other particulars given in the application are correct and complete, admit the application and if the amount of fee deposited by a registered dealer under sub-rule (4) is found to be in accordance with the provisions of sub-rule (2) it shall grant him a licence in Form 2.
(7)Where the Licensing Authority is not satisfied about the correctness of the turnover or taxable turnover or completeness of other particulars given in the application it shall, after making such enquiry as it considers necessary, and after giving the applicant an opportunity of proving the correctness of the turnover or the taxable turnover and completeness of the particulars furnished in the application, determine, for reasons to be recorded in writing, the turnover or the taxable turnover, as the case may be, to the best of its judgement and the fee payable by him in accordance with the provisions of sub-rule (2) and shall serve upon the applicant a notice of demand in Form 3 and require the registered dealer to further deposit the difference between half the amount so determined by it and the amount already deposited by the registered dealer within thirty days of the intimation in that behalf and on depositing the difference, the Licensing Authority shall grant a licence in Form 2.
(8)Where a registered dealer is found to have deposited an amount in excess of the amount as calculated by the registered dealer under sub-rule (2), such excess amount shall be adjusted towards the balance to be paid under sub-rule (9).
(9)The balance of the licence fee shall be paid by the registered dealer within two months from the date on which the licence is granted and he shall submit to the Licensing Authority a copy of the treasury receipt challan in proof of such payment.
(10)Every licence granted under this rule shall-
(a)be deemed to have been issued personally to the licensee and shall not be transferable; and
(b)expire immediately after the last day of the year in respect of which it is granted.
(11)Where a licence granted under this rule is lost or destroyed or defaced or becomes unintelligible, a duplicate of the licence may be issued by the Licensing Authority on payment of a fee of rupees twenty; such licence shall be stamped "Duplicate" in red ink.