National Permit - Addition or deletion of States

A question always arises in mind about national permit is when to add or delete States. Can a state be deleted or added in the middle of an authorisation period. The answers lie in a recent Government Order.

A notification issued by the Government in G O Ms 1625 Home (TR III) Department dated 12.12.08 clears all the doubts about the authorisation and addition of states etc.

The details are
1. The composite tax is paid in one lump sum at the time of applying for n.p.
It should be renewed on a yearly basis.

2. The renewal can be made by an application 15 days prior to the expiry of the existing authorisation. The penalty for any delay is Rs.100/- per month or part there of. The penalty shall be calculated from the date prior to 15 days of expiry of existing authorisation.

3. Variation of national permit by including a new state can be done anytime during the authorisation period., provided the composite tax is paid fully and not on pro rata basis.

4. The composite tax is payable so long as the authorisation is valid.

5. We have to collect fee for inclusion and fee for deletion while making any variation. It means if an applicant wants to delete a state and include a state and apply for variation, we have to collect fees for both deletion and inclusion. If he applies only for deletion, only one fees.,for inclusion only one fees, but if he applies for both deletion and inclusion then two variation fees has to be collected with one service charge.