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9.
Start up Business:
1) A dealer intending to set up a business in
taxable goods who does not anticipate making first taxable sale within the next
three months and applying for VAT registration shall be treated as a start up
business.
2) The dealer referred to in sub-rule (1) shall
make an application on Form VAT 104 in addition to Form VAT 100 to the authority
prescribed.
3)
The dealer applying for registration as a start-up business under clause (b) of
sub-section (6) of Section 17 may apply to be registered only for a period of
twenty four months prior to making taxable sales.
4) The dealer registered as a start up
business under clause (b) of sub-section (6) of Section 17 may claim a tax
credit on each tax return for a maximum period of twenty four months prior to
making taxable sales. The input tax claimed must be in respect of tax paid on
inputs relating to the prospective taxable business activities. The credit
shall be eligible for refund under the provisions of Section 38. The provisions
of sub-section (1)(b) of Section 38 shall apply only from the tax period in
which the first taxable sale was made.
5) The dealer registered as a start up
business under clause(b) of sub-section (6) of Section 17 shall abide by all the
requirements and obligations of a VAT dealer including the proper keeping of
books of accounts and regular filing of returns.
6) A dealer shall cease to be registered under the
provisions of clause (b) of sub-section (6) of Section 17 and shall become
registered under the provisions of sub-section (1) of Section 17, when that
dealer makes a taxable sale in the course of business
7) A dealer shall cease to be registered under the
provisions clause (b) of sub-section (6) of Section 17 at the end of a
twenty four months period from the date of registration if no taxable sale has
been made. In such a case, the registration will be cancelled under the
provision of Rule 12.
8) The Deputy Commissioner may at his discretion,
where there are reasonable grounds, vary the conditions under sub rules (3),
(4), (6) and (7) and may grant a further time upto twelve months for
making the first taxable sale and to continue as start up business.
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