(1) A dealer intending to set up a factory to manufacture taxable goods, and who anticipate making first taxable sales within the next three years, and applying for VAT registration, shall be treated as a start up business.

(2) A dealer referred to in sub-rule (1) shall make an application in Form JVAT 102, within thirty days of such intention to set up a factory to manufacture taxable goods: including the information, as contained in Annexure-I annexed to Form JVAT 100, for registration before the Joint Commissioner of Commercial Taxes (Administration).

Explanation: 'Intention' to set up a factory to manufacture taxable goods shall commence from the date, the application in Form JVAT 102 is filed.

(3) A dealer applying for registration as a start-up business under clause (lii) of Section 2 of the Act may apply to be registered only for a period of thirty-six months prior to making taxable sales.

(4) A dealer registered as a start up business under clause (lii) of Section 2 of the Act may claim a tax credit on each tax return for a period of thirty-six months prior to making taxable sales. The input tax claimed must be in respect of tax paid on inputs relating to prospective taxable business activities.

(5) A dealer registered as a start up business under clause (lii) of Section 2 of the Act shall abide by all the duties and obligations of a VAT dealer including the proper keeping of books of accounts and regular filing of returns.

(6) The Joint Commissioner of Commercial Taxes (Administration) shall, after such enquiry or verification to his satisfaction; shall issue a registration certificate to this effect and allot a Taxpayers Identification Number; generated manually and issue Certificate in Form JVAT 107 within thirty days from the date of such application.

Provided such dealer shall not be entitled to issue Declaration Forms; as prescribed in sub-rule (2) of Rule 42.

(7) A dealer shall cease to be registered under the provisions of clause (lii) of Section 2 of the Act and become registered under the provisions of sub-section 1 of Section 25 of the Act, when that dealer makes a taxable sale in the course of business.

(8) A dealer shall cease to be registered under the provisions of clause (lii) of Section 2 of the Act at the end of a thirty-six months period from the date of registration if no taxable sale has been made. In this case, the registration will be cancelled under the provision of Rules.