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.
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.
