(1) Every dealer whose turnover during the twelve months immediately preceding the commencement of this Act exceeds the limit prescribed under sub-section (1) of Section 5 shall get himself registered in the prescribed manner within thirty days of the commencement of this Act.

(2) (a) Every dealer other than a dealer to whom sub-section (1) applies shall get himself registered within the prescribed period from the date on which his turnover in a year first exceeds the limit prescribed under sub-section (1) of Section 5.

(b) Every dealer being a transferee of a business within the meaning of sub-section (1) of Section 29 shall get himself registered within thirty days from the date of transfer of the business of which he is a transferee.

(c) A dealer who though not liable to pay tax under Section 5 desires to obtain a registration certificate voluntarily may get himself registered under this Act.

(d) Any person intending to establish a business in the State for the manufacture of goods for sale of value exceeding one lac in a year and who is registered in the Industries Department of the State Government for establishing an industrial unit in the State or who is issued a licence wherever necessary or has sent a memorandum of information to the Central Government to establish a new industrial undertaking in the State under the provisions of the Industries (Development and Regulation) Act, 1951 (No. 65 of 1951) may, notwithstanding that he is not liable for registration under clause (a), get himself registered under this Act.

(3) Every dealer required to get himself registered under sub-section (1) or clause (a) or clause (b) of sub-section (2), shall, or a dealer who desires to get himself registered under clause (c) of sub-section (2), or a person who desires to get himself registered under clause (d) of sub-section (2) may make an application to the Commissioner in such form and manner as may be prescribed, giving correct and complete particulars therein. Such application shall be accompanied by an affidavit in support of the particulars given in the application and also a satisfactory proof of payment of a registration fee of five hundred rupees in the prescribed manner.

(4) (a) On the day the application for grant of a registration certificate as required by sub-section (1) or sub-section (2) is received, the said authority shall grant the applicant a registration certificate in the prescribed form.

(b) After issue of the registration certificate under clause (a), the Commissioner shall verify the particulars given in the application in such manner as may be prescribed.

(c) If the Commissioner on verification under clause (b), is satisfied that the particulars given by the applicant in his application are incorrect or that the applicant has misrepresented certain facts, he shall, after giving the applicant an opportunity of being heard and recording the reasons in writing, cancel the registration certificate issued to the applicant under clause (a) in accordance with the provisions of clause (c) or clause (e) of sub-section (10) from the date of its issue, not later than thirty days of the date of receipt of the application.

(5) The registration certificate granted under sub-section (4) shall take effect from-

(a) in a case where a dealer required to get himself registered under clause (a) or clause (b) of sub-section (2) has applied for registration within the period prescribed under clause (a) or specified in clause (b) of the said sub-section, the date on which his turnover in a year first exceeds the limit prescribed under sub-section (1) of Section 5 or the date of transfer of business, as the case may be;

(b) in a case where a dealer required to get himself registered under clause (a) or clause (b) of sub-section (2) has applied for registration after the expiry of the prescribed or specified period, as the case may be, the date on which he applies for registration;

(c) where a dealer has applied under clause (c) or a person has applied under clause (d) of sub-section (2), for registration the date of such application and notwithstanding the provisions of Section 5, such dealer or person as the case may be, shall be liable to pay tax under this Act, during the period from the said date till his registration certificate remains in force.

(6) Without prejudice to the provisions of sub-section (6) of Section 19 when a dealer has without reasonable cause, failed to get himself registered within the prescribed time as required by sub-section (1) or clause (a) or clause (b) of sub-section (2) the Commissioner may, after giving such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty, in addition to the fee payable, a sum not exceeding rupees five hundred.

(7) Every dealer who at the commencement of this Act holds a registration certificate under the provisions of the Act repealed by this Act shall, on such commencement, be deemed for all purposes of this Act to be a dealer registered and holding a registration certificate under this Section.

(8) If any registered dealer or other dealer who is required to furnish returns under sub-section (1) of Section 18-

(a) sells or otherwise disposes of his business or any part or place of his business or effects or comes to know of any other change in the ownership of the business, or

(b) discontinues his business or changes his place of business or opens a new place of business, or

(c) changes the name or nature of his business,

he or if he dies, his legal representative shall within the prescribed time, inform the prescribed authority accordingly.

(9) (a) The Commissioner shall-

(i) on an application made by a registered dealer for amendment of his registration certificate in pursuance of the provisions of sub-section (8) or otherwise, amend the registration certificate of the dealer or reject the application within 30 days of the date of receipt of such application, after making such enquiry as he deems fit; and

(ii) on being satisfied that the registration certificate issued to a dealer requires amendment with regard to certain particulars specified therein, amend the registration certificate after giving the dealer an opportunity of being heard.

(b) When the registration certificate is amended under sub-clause (i) of clause (a) in pursuance of any of the events specified in sub-section (8), such amendment shall take effect from the date such event has taken place and in all other cases falling under the said sub-clause the amendment shall take effect from the date of application. An amendment made under sub-clause (ii) of clause (a) shall take effect from the date of order for making such amendment.

(10) When-

(a) a registered dealer discontinues or transfers his business; or

(b) the liability of a registered dealer to pay tax ceases; or

(c) a registered dealer has been granted a registration certificate by mistake; or

(d) a registered dealer is in arrears of tax or penalty or any other sum due under this Act or under the Act repealed by this Act; or

(e) the Commissioner for reasons to be recorded in writing, is of the opinion that the registration certificate should be cancelled for any other reasons;

the Commissioner may either on his own motion or on the application of the dealer in this behalf cancel the registration certificate.

Provided that where the Commissioner proposes to cancel the registration certificate of a dealer under this sub-section, he shall give the dealer an opportunity of being heard.

(11) Any dealer whose registration certificate is cancelled under clause (d) or clause (e) of sub-section (10) shall, for the purpose of sub-section (6) of Section 19 be deemed to be a dealer, who has failed to apply for registration, but shall not be liable to pay any penalty under the said sub-section.

(12)(a) The Commissioner may, for the proper realisation of tax, from time to time demand from a registered dealer reasonable security as may be prescribed to be furnished in the prescribed manner.

(b) The Commissioner may, by order, forfeit the whole or any portion of the security furnished by a dealer,-

(i) for collection of any amount of tax, interest or penalty payable by the dealer; or

(ii) if the dealer is found to have misused any prescribed certificate or declaration or has failed to keep or retain them in the prescribed manner.

(c) No order shall be passed under sub-clause (b) above, without giving the dealer a reasonable opportunity of being heard.