Security Form in UP VAT

QUERY: Alok Singh

Sir how many registered dealers are required in UP Vat registration. Surety and FD both required for registration Vat in up either only surety by dealer or either only FD surety 25000 required.please reply out my query.

ANSWER

Thanks for posting your query on our page, we are happy to help your. Please get your answer from below:

1. In Uttar Pradesh VAT, a dealer is required to deposit security of Rs. 25000.00 at the time of registration. As per Registration circular issued by Department the form of security are:

• By depositing the amount in any post office or scheduled or nationalized bank and pledging the pass book in favour of the assessing authority by designation and not by name ; or
• In the form of bank guarantee by any scheduled or nationalized bank ; or
• By mortgaging any immovable property valuing at least 25% more than the amount of security ; or
• In the form of surety bond executed jointly by the dealer and the two other dealers of status and standing as his surety jointly and severally ; or
• By depositing the amount in cash in any branch of the State Bank of India or treasury or sub-treasury in U.P.

2. Only security of one type is to be submitted from the lost above i.e. Either FDR or Surety Bond or Property Mortgage or Cash


To sum up our Answer you can either deposit FDR worth Rs. 25000.00 pledged in the name of Assessing Authority or Surety Bond of Rs. 25000.00 by 2 dealers, who are atleast 3 years old.


Hope this helps you, feel free to contact us anytime in case of further queries.