Basic information about the types of licenses issued and regulated by the Business Licensing and Consumer Services Unit (BL&CS) can be found below. Different transactions are possible and different fees apply for each type of license. More information about each license type can be found in the appropriate infoMVA process description.
Note that sellers of low speed vehicles will be licensed as either new or used vehicle dealers, as appropriate.
Types of Business Licenses
New Vehicle Dealer
Used Vehicle Dealer
Emergency Vehicle Dealer
Title Service Agent
2nd Stage Manufacturer
Automotive Dismantler & Recycler
There are two types of Dealers.
- Registered Dealers
- Unregistered Dealers
A dealer whose gross annual turnover is above the VAT threshold limit is required to register under VAT. This is mandatory. A new dealer will be allowed 30 days time from the date of liability to get registered.
A VAT registered dealer will be eligible for input tax credit. All Registered Dealers must follow the VAT law, irrespective of the size of the business. A Registered Dealer may sell to both Consumers and Non- Consumers.
A registered dealer can opt for compositions scheme.
A dealer whose annual turnover is less than Rs.5 lakhs is an Unregistered Dealer and has been granted the status of a Consumer. So, the VAT paid by an Unregistered Dealer is treated as his cost and is charged no further VAT on his sale. It is assumed that such small dealers will not be supplying other industries or dealers. Therefore they are not included into the VAT chain.
But if the small dealer is in the business of actually supplying to others besides consumers, then he can optionally choose to register and gain the benefits of a Registered Dealer.
The registered dealer pays VAT on goods purchased from unregistered dealer.
More about the types dealers Click here…
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