(1) A VAT dealer registered under sub-section (1) of section 26 of the Act, shall fulfill the following requirements:

a. the dealer shall be making taxable sales.

b. the dealer shall have a prominent place of business owned or leased or rented in his name.

c. the dealer shall have a bank account.

d. the dealer shall not have any tax arrears outstanding under the Repealed Acts or CST Act 1956.

(2) A dealer registered under sub-section (1) of Section 26 of the Act shall :

a. maintain the full records and accounts required for VAT

b. file accurate and timely VAT returns and pay any tax due.

c. remain registered for thirty six months from effective date of registration.

(3) Where VAT dealer registered under sub-section (1) of section 26 of the Act fails to file tax returns and fails to pay any tax due within the prescribed time and his taxable turnover remains under the limits prescribed in sub-section (5) of Section 8, the Registering authority shall cancel such registration after giving the VAT dealer the opportunity of being heard and for this purpose the prescribed authority shall issue a notice in JVAT 112.