Trade Certificate
A trade certificate allows a dealer to receive exemption from registering the motor vehicle owned by the vehicle owner. A dealer cannot sell a motor vehicle to another purchaser without the vehicle’s temporary or permanent registration. Such certificate is issued by the registering authority and is valid only for a period of 12 months from the date it is issued.
What is the procedure to apply for a trade certificate?
The process to apply for a trade certificate is given as follows:
The applicant is required to apply for a trade certificate via the Form 16
Next, you will have to pay the charge to the registering authority to issue your trade certificate. The fee is to be paid as per Rule 81 written under the Central Motor Vehicles Act 1989
If the vehicle belongs to any of the categories mentioned below, then you need to make a separate application:
- Motorcycle
- Invalid carriage
- Light motor vehicle
- Medium passenger motor vehicle
- Heavy passenger motor vehicle
- Heavy goods vehicle
What are the documents required for getting a trade certificate?
The below mentioned are the list of documents you would require while applying for a trade certificate:
- Form 16 (application for trade certificate)
- Dealership letter from manufacture or any other appointing letter
- The map of your workplace
- PAN number of the trade owner
- Any valid address proof (such as Voter ID etc.)
- GST Number of your business/firm
- Documents of your workplace (documents of the place where you run your business or the Rent agreement if your run your business on rent)
- Photographs of your workplace
- DD
- Aadhaar Card
How to grant or renew your trade certificate?
On receiving the receipt of an application in respect of a vehicle, the registering authority will assign a trade registration mark consisting of the registration mark referred to in notification made under sub-section (6) of section 41 followed by two letters and a number containing not more than three digits for each vehicle, for example-
- AB-Represent State Code
- TC1 - Trade certificate number for the vehicle
How can you issue a duplicate trade certificate?
If your trade certificate is lost or destroyed, you should immediately report the loss at your nearest police station. After informing them, you can fill and apply in Form 18 and submit to the registering authority to get a duplicate certificate accompanied by the appropriate fee as specified in rule 81. On receipt of an application along with the fee, the registering authority will issue a duplicate trade certificate clearly marked "Duplicate". If after the issue of a duplicate certificate the original is traced, you shall surrender the same to the registering authority who issued it.
What happens when the registering authority refuses to issue or renew your trade certificate?
- When the registering authority refuses to issue or renew your trade certificate, it will refund your fifty percent of the fee which you paid along with the application.
- Restrictions on use of trade certificate or trade registration mark and number
- A trade certificate can be used by the person to whom it has been issued and such a person shall not allow another person to use it. Only in certain special circumstances it can be used by any other person. These circumstances are mentioned below:
- If the person driving the vehicle works under the authority of such person to whom the trade certificate has been issued. It needs to be verified by a bonafide document.
- If the person driving the vehicle is doing so on the behalf of the trade certificate holder.
- If the person driving the vehicle is doing so as a prospective buyer who is willing to purchase the vehicle from the person to whom the trade certificate has been issued.
In what conditions a motor vehicle with a trade certificate can be used?
The below given are the different circumstances under which a motor vehicle with trade certificate can be used:
- If the trade certificate holder or another person on behalf of the holder is driving the vehicle for the testing, construction, or repair purpose.
- If the trade certificate holder or another person on behalf of the holder is driving the vehicle to sell it to a prospective purchaser and/or is returning from the same place.
- If the trade certificate holder or another person on behalf of the holder is driving the vehicle to make the delivery to the purchaser.
- If the trade certificate holder or another person on behalf of the holder is driving the vehicle from the airport or railway station after its delivery to the location.
- If the trade certificate holder or another person on behalf of the holder is driving the vehicle to or from an exhibition of motor vehicle from where it is to be propositioned for a sale.
- If the trade certificate holder or another person on behalf of the holder is driving the vehicle for the purpose of return to the financier due to a fault on the part of the party of the financier.
