Security for VAT registration: combined existing guarantee undertaking and additional guarantee satisfy statutory security requirement. The circular clarifies that if a deemed registered dealer has an existing bank guarantee or personal surety for an amount below the prescribed security threshold, submission of an undertaking from that surety or bank together with an additional bank guarantee or personal surety for the deficient amount will be treated as sufficient compliance with the statutory security requirement under the VAT rules, and that the prescribed security may be reduced on production of specified documents.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Security for VAT registration: combined existing guarantee undertaking and additional guarantee satisfy statutory security requirement.
The circular clarifies that if a deemed registered dealer has an existing bank guarantee or personal surety for an amount below the prescribed security threshold, submission of an undertaking from that surety or bank together with an additional bank guarantee or personal surety for the deficient amount will be treated as sufficient compliance with the statutory security requirement under the VAT rules, and that the prescribed security may be reduced on production of specified documents.
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