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CS Executive · Setting Up of Business, Industrial and Labour Laws · Various Initial Registrations and Licenses

Ravi, a resident of Delhi, is an occasional trader who sets up a temporary stall at a trade fair in Chennai, where he has no fixed place of business, and supplies taxable goods there for 20 days. Which statement about his registration is correct?

Ravi is a casual taxable person, as he occasionally supplies taxable goods in a State where he has no fixed place of business. He must apply for registration in Tamil Nadu at least five days before commencing business there, and his Delhi registration does not suffice.

  1. AHe need not register because his stay is temporary
  2. BHe may register only after the fair ends, within 30 days
  3. CHe must register as a normal taxpayer in Delhi only
  4. DHe is a casual taxable person and must apply for registration at least 5 days before commencing business in ChennaiCorrect

Explanation

A person who occasionally supplies taxable goods in a State where he has no fixed place of business is a casual taxable person. Such a person must obtain registration and apply at least five days before starting business. Registration in Delhi does not cover supplies in Tamil Nadu, and temporary presence gives no exemption.

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