Monday, September 21, 2009

Trade certificate

Trade certificates are issued to dealers of motor vehicles, for the purpose of bringing the vehicle for registration.

Central motor vehicles Rules 1989 from 34 to 43 deals with trade certificate . Application for the issue of The trade certificate shall be made for each class of vehicle separately. Suppose if a dealer sells LMV and motor cycle, he has to make separate application for each class of vehicle.

Conditions for the issue of trade certificate:
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The company which applies for the certificate shall be the bonafide dealers of the vehicle.They should have the necessary infrastructure to sell the vehicle like a showroom, mechanics, office etc.

How to allot Trade certificate Mark numbers.
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A trade certificate shall have a Reg.Mark and number. Rule 35 and circular No.2/94 contemplates how a trade certificate mark should be exhibited.

Like Reg.No. it should have first State Code followed by District Code/Trade certificate number. for eg.TN-90/TC-001.The number should be in three digits. If three digits is over then we have to switch over to next serial. for eg. TN-90 A/TC-001

The trade certificate should not be renewed in old numbers.

Uses of Trade certificate:
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Bring the vehicle for Reg. For demo purposes. For repair works etc.If the dealer registers ten vehicles a day,he should have ten trade certificates. with one certificate he can bring only one vehicle.

Wednesday, September 16, 2009

Issue of driving licences - timing.

Circular no. 14/2009 which is a reproduction of circular no.43/2007 regarding issue of new licences set forth certain new guidelines regarding the percentage of failing the candidates.

As per this circular a motor cycle driving licence should take 4 minutes, a car licence to ten minutes and a heavy licence to 15 minutes.

The percentage of fail must be 15 to motor cycle and 25 to car and 50 to heavy.

If the candidates are many but the testing authorities are less how to overcome this.

1. Start the testing early. we may even start at 9 a.m. we may plan in such a way that we cater to all driving schools and all candidates.

2. The services of RTO may also be utilized as he is most of the times available and not constrained by other works like FC or Registration.

3. While calculating the time factor we need not count the failed candidates timing as an inspector can easily find out whether the candidate can handle a heavy or light vehicle at the very first minute.

4. As there is no limit to issue of licences, we may allocate maximum berth to driving licence.

5. However the timing factor has to be calculated perfectly as it is easily avilable in the computer, how many tests we have conducted .

Tax entry at the time of making HPN etc

At the time of making Hire purchase agreement, termination transfer of ownership, we should invariably make the tax paid entries for that particular quarter in the B Register.

Because there may be chances that the owner might not have paid tax or otherwise. Tobe on the safe side, we have to make the tax paid entries.

The Transport Commissioner has issued circular instructions in this regard.

Please refer circular no. 34/2002.

There may be chances that the audit party may note it and write an objection if the tax details are not made. So for a transport vehicle when it comes to our office for making entries like HPN or HPTer or TO in a corner of the slip, tax entries have to be made.

Monday, September 14, 2009

How to issue RC in the name of the financier

Various circulars have so far been issued by the Transport Commissioner regarding issue of Reg Certificate in the name of the financier as contemplated in Section 51 (5)of the Motor vehicles Act.

If a financier seizes a vehicle naturally the owner lose not only the vehicle but also the title. But as the vehicle is in some X name how can the financier get the Reg.Certificate in his name?

Procedures to be followed.
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In most cases the RC is not available with the financier, then he has to apply to the Reg.Authority concerned in form 36. After receipt of such an application the RTO has to satisfy himself that actually the financier has taken possession of the vehicle.

If the vehicle is a transport vehicle covered by a permit, we have to issue a notice to the owner with a request to show cause as to why the permit should not be cancelled.We have to take action to cancel the permit too.

Once the RTO is satisfied that the financier has actually taken possession of the vehicle he should send a notice to the Reg. owner in form 37. If the acknowledgement is received and the owner has not objected to the issue of RC in the name of the financier, then the RC can be issued. If the party objects then the RTO has to decide the case on merits. If the acknowledgement is returned undelivered, field staff has to serve the form 37 and then issue the RC in the name of the financier.

How to write the RC:
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No previous entries should be incorporated in the RC . The RC should be issued afresh making the financier as the first owner and without repeating the h.p. or t.o. entries.

Ref. circular 26/2001 also Section 51(5) of M.V.Act.