Thursday, December 22, 2011

Rule 14. Procedure for Cancellation of VAT Registration ( Andhra Pradesh Commercial Tax )

Rule 14. Procedure for Cancellation of VAT Registration.—
(1) Where a VAT dealer ceases to carry on business, that dealer or his legal
representative shall apply to the authority prescribed for cancellation of
registration within fourteen days of the closure of business.
(2) Subject to sub-rule (3), a VAT dealer may apply in writing on
Form VAT 121 to have his VAT registration cancelled if :—
(a) with respect to the most recent period of three consecutive
calendar months, the taxable turnover did not exceed Rupees ten
lakhs; and
(b) the taxable turnover for the previous twelve consecutive calendar
months did not exceed Rupees thirty lakhs.
(3) In the case of a VAT dealer making taxable sales, who is registered
under clause (a) of sub-section (6) of section 17, an application under sub-rule
(2) shall only be made after the expiration of twenty four months from the
date of registration.
(4) Every VAT dealer whose registration is cancelled under this rule
shall pay back input tax credit availed in respect of all taxable goods on hand
on the date of cancellation. In the case of capital goods on hand on which input
tax credit has been received, the input tax to be paid back shall be based on the
book value of such goods on that date :
Provided that in respect of transfer of a business to another VAT dealer,
there shall be no requirement to repay the input tax credit availed on capital
goods and other goods.
(5) The authority prescribed may cancel the registration of a VAT
dealer who has applied for cancellation under sub-rule (1) or sub-rule (2) if it
is satisfied that there are valid reasons for such cancellation of registration.
The cancellation shall be intimated on Form VAT 124.
(6) The authority prescribed may cancel the registration of a VAT
dealer who has not applied for cancellation of registration if the authority
prescribed is satisfied that the dealer is not entitled for registration under
section 17 or found to be not complying with the provisions of the Act.
(7) The authority prescribed shall intimate on Form VAT 123 to a
VAT dealer when refusing to cancel the registration of the dealer under this
rule within fourteen days of receipt of Form VAT 121.
(8) The authority prescribed shall issue a notice on Form VAT 125 to
a VAT dealer before compulsorily cancelling the registration.
(9) The authority prescribed may cancel the registration of a VAT
dealer registered under sub-section (6) of section 17, where the VAT dealer :—
(a) has no fixed place of abode or business; or
(b) has not kept proper accounting records relating to any business
activity carried on by him; or
(c) has not submitted correct and complete tax returns.
(10) The cancellation of registration shall take effect from the end of
the tax period in which the registration is cancelled unless the authority
prescribed orders the cancellation to take effect at an earlier date.
(11) The cancellation of a registration of any VAT dealer shall not
affect any liabilities under the Act or any requirement to comply with any
provisions of the Act until the date of cancellation of registration.
(12) Wherever any order of cancellation or refusal to cancel is made,
the VAT dealer shall be given an opportunity of being heard.

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