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THE RAJASTHAN VALUE ADDED TAX ACT, 2003
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Body CIRCULAR No.F.3(A)(45)TAXCCT/09/1738 Dated 24th March,2009

All Deputy Commissioners (Adm.)

All Assistant Commissioners

All Commercial Taxes Officers

All Assistant Commercial Taxes Officers

It has been reported that majority of dealers, applying for registration are submitting surety bonds in form VAT 64 under Rule 77 of the Rajasthan Value Added Tax Rules, 2006, and registered dealers are giving sureties for more than two dealers.

Unscrupulous dealers are taking advantage of this facility and furnishing sureties of such dealers who may not be financially sound and may themselves becomes defaulters in future and recovery from such sureties would not be possible and the purpose of having security of the registered dealers is defeated.

Henceforth, it is, enjoined upon all registering and assessing authorities to ensure that if a single registered dealers furnishes sureties for more than two dealers it shall not be accepted.