(1) Every person, liable for deduction of tax at source under Section 27, shall obtain a certificate of registration from the Commissioner in such manner and form as may be prescribed.

(2) Every person required to obtain a certificate of registration under sub-section (1), shall, within 30 days of his becoming liable to pay tax under this Act, apply for the certificate of registration to the Commissioner, in the prescribed form and that authority shall, after such inquiry as it considers necessary, within 30 days of the receipt of application, if the application is in order, grant certificate of registration.

(3) Where a person liable for registration has failed to apply for such certificate, within the time specified in sub-section (2), the Commissioner may, after giving him a reasonable opportunity of being heard, impose penalty not exceeding one hundred rupees for each day of delay subject to a maximum of five thousand rupees.

(4) Where a person liable for registration has given false information in any application submitted under this section, the Commissioner may, after giving him a reasonable opportunity of being heard, impose a penalty not exceeding five hundred rupees.