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| 20 : Furnishing of security under clause (a) of sub-section (12) of section 17 M.P. VAT RULES | |
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20 : Furnishing of security under clause (a) of sub-section (12) of section 17
(1) The amount of security that may be demanded from a dealer under clause (a) of sub-section (12) of section 17 shall be –
(i) the highest amount of tax payable by such dealer in any quarter of the previous year subject to maximum of rupees one laces ;
(ii) where there is no previous year, rupees ten thousand.
(2) Security shall be in the form of FDR or security bonds.
(3) The security obtained from dealer under sub rule (1) shall be held for a period of 2 years.
(4) If the dealer complies with the requirement of the Act during the said period, security shall be released.
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