In exercise of the powers conferred by section 85 of the Jammu and Kashmir Value Added Tax Act, 2005, the Government hereby direct that in the Jammu and Kashmir Value Added Tax Rules, 2005, the following amendment shall be made; namely:-

1. Rule 19 shall be recast as under.-

"19. Amendment in registration certificate.-

(1) If a dealer, to whom a certificate of registration has been issued, changes the name, style, nature or place of business or opens a new branch of business or effects any other change in his business, he shall within thirty days of such change, apply to the Jurisdictional Registering Authority for amendment in the certificate of registration.

2) Every dealer who sells his business shall submit an application in writing supported by duly registered sale documents to Registering Authority for necessary change in ownership of business within three months of such event. The applicant/dealer shall submit true accounts of the stock position on the date of such deed of sale and the prospective owner shall submit such documents for establishing the credentials and identity, as the Registering Authority may deem necessary for effecting such change. After Registering Authority is satisfied that the applicant/dealer has sold his business and such business shall continue to be carried by the prospective owner, he shall allow necessary change in the ownership.

3) Where a registered dealer carrying on business as an individual enters into a partnership, he shall inform the Registering Authority in writing within thirty days of his entering into such partnership alongwith duly registered partnership deed, a true account of stock position on the date of such deed and an undertaking by the partners that they shall be jointly and severally liable to discharge any liability which may accrue on account of tax, penalty, interest or any other sum. Registering Authority after satisfying himself about the credentials of partners, and also genuineness of documents filed, shall allow the necessary change in the registration certificate.

4) Where a registered dealer dies and his legal heir/heirs intend to continue the same business, the legal heir/heirs shall submit an application in writing to the Registering Authority for incorporating the legal heir/heirs as successor/s of the deceased dealer, giving a true account of the stock position on the date of death of the proprietor. The legal heir/heirs shall submit documents, as may be demanded by Registering Authority, to establish their credentials. The Registering Authority after satisfying about the correctness and genuineness of application, so made shall amend the certificate of registration accordingly.

5) The jurisdictional Registering Authority on receipt of such application, may, after such enquiry, as it may deem necessary, within twenty days, amend the certificate of registration."

2. Rule 23 shall be recast as under-

"23. Cancellation of registration.-

(1) Every registered dealer who discontinues his business, shall submit an application in writing together with final return alongwith proof of payment of tax on the entire stocks which he was holding at the time of discontinuation of business, alongwith his registration certificate to the Registering Authority to cancel the registration and such application shall be made within three months of such event.

(2) Where a registered dealer dies and his 'legal heir/heirs' don't wish to continue the business, they shall submit an application for cancellation of registration alongwith final return, registration certificates and proof of payment of all taxes, to the Registering Authority within 30 days from the date of the death of such dealer. The Registering Authority after satisfying himself that the 'stocks held' by the deceased have suffered tax and that the legal heir/heirs have paid such tax, shall cancel the certificate of registration."

This notification shall come into force from 01.04.2013.

By order of the Government of Jammu and Kashmir

Sd/-

(B. B. Vyas), IAS,

Principal Secretary to Government

Finance Department