Download P VAT Form VAT -3 Personal Bond by a solvent surety under Punjab Value Added Tax Act, 2005
As per Punjab vat rule 4
1. The security or additional security or further security, as the case may be , required to be furnished for registration, shall be in the form of a bank guarantee from a local scheduled bank or in the form of a personal bond with two solvent sureties, acceptable to the designated officer, in Form VAT-3.
2. Where the security or additional security or further security , as the case may be, furnished by a person, is in the form of Bank Guarantee, the person furnishing such Guarantee, shall get the same re-validated at least thirty days before the date of its expiry.
3. Where the security or additional security or further security, furnished by a person, is in the form of a surety bond and the surety becomes insolvent or is otherwise incapacitated or dies or withdraws, the person shall, within fifteen days of the occurrence of any of these events, inform the designated officer granting the registration, and shall within thirty days of such occurrence, furnish a fresh security for the like amount.
4. The security already furnished by a person registered under the repealed Act, shall be deemed to be a security furnished under this Act, subject, however, to the confirmation from the sureties within a period of one year from the appointed day. In the event of non-furnishing of such confirmation, a fresh security shall be furnished within a period of ninety days from the expiry of the said period of one year.
In the event of default of payment of any amount due under this Act, the security or additional security or further security, as the case may be, furnished by the person, shall be liable to be adjusted towards such amount due, after intimation to such person and the shortfall in amount of such security, shall be made up by such person within a period of thirty days from the date of intimation.
Security from certain classes of persons.
25. (1) Every person applying for registration under this Act, shall furnish a security of rupees fifty thousand in the manner, prescribed for securing proper and timely payments of tax or any other sum, payable by him under this Act:
Provided that the security already furnished by a person registered under the repealed Act, shall be deemed to have been furnished under this Act.
(2) The designated officer granting registration, may, on application made by a person for release, discharge or refund of the security, order the release, discharge or refund of the whole security or any part thereof, furnished by him, if the same is not required.
Explanation.- The designated officer shall not be required to retain security or surety furnished by a person on behalf of a taxable person or registered person, if the registration of such a person has been cancelled under this Act and nothing remains due against such a person.
(3) Where it appears expedient to the designated officer, granting registration, so to do, for the proper realisation of, tax payable under this Act, he may, at any time while such certificate is in force, by an order in writing and for reasons to be recorded therein, require the person, to whom the registration has been granted, to furnish within such time, as may be specified in the order and in the prescribed manner, such additional security, not exceeding rupees two lac in addition to the security, furnished under sub–section (1), as may be specified in the order, for the aforesaid purpose:
Provided that no person shall be required to furnish any additional security under this sub-section, unless he has been given an opportunity of being heard.
(4) The designated officer, granting the registration, may, by an order in writing, for good and sufficient cause, forfeit or realise the whole or any part of the security or additional security furnished by a person for recovery of any amount of tax or penalty due or payable by a person:
Provided that no order shall be passed under this sub-section without giving the person concerned, an opportunity of being heard.
(5) In case the security is rendered insufficient because of the order made under sub–section (4), the person concerned shall furnish further security to make up for the amount, which has fallen short, in such manner and within such time, as may be prescribed.